PLANT LOCATION AND LAYOUT
What is Plant Location?
Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per its own requirements and circumstances. Each individual plant is a case in itself. Businessman should try to make an attempt for optimum or ideal location.
FACTORS INFLUENCING PLANT LOCATION
?Proximity to markets ?Proximity to raw materials ?Infrastructural facilities ?Transportation facilities ?Labour and wages ?Climatic condition ?Safety requirements ?Supporting industries & services ?Waste disposal ?Availability & cost of the land
SELECTION CRITERIA
a) Natural or climatic conditions. b) Availability and nearness to the sources of raw material. c) Transport costs: In obtaining raw material and also distribution or marketing finished products to the ultimate users. d) Access to market: Small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas.
e) Availability of Infrastructural facilities: E.g. developed industrial sites, link roads, nearness to railway stations, airports or sea ports, availability of electricity, water, public utilities,& means of communication are important, especially for small scale businesses.
f) Availability of skilled and non-skilled labor and technically qualified and trained managers.
g) Banking and financial institutions are located nearby.
h) Strategic considerations of safety and security should be given due importance.
I) Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a particular location are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and liberalization. Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution control and decentralization of industries. j) Residence of small business entrepreneurs want to set up nearby their homelands.
LOCATIONAL ANALYSIS
Locational analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given enterprise. It consists the following:
(a) Demographic Analysis: It involves study of population in the area in terms of total population (in no.), age composition, per capita income, educational level, occupational structure etc. (b) Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites.
PLANT LAYOUT
PLANT LAYOUT
Plant layout? ? ? ? placement of departments placements of workgroup within departments placement of machines According to J. L. Zundi, “Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized.
Objectives
? Proper and efficient utilization of available floor space ? Proper utilization of production capacity. ? Reduce material handling costs ? Utilize labor efficiently ? Reduce accidents ? Provide ease of supervision and control ? Provide for employee safety and health ? Avoid delay in production process ? Future expansion ? Efficient material handling system ? Rearrangement of plant
PRINCIPLES OF PLANT LAYOUT
1) Principle of Minimum Movement / TransportationPlant layout and materials handling system are closely related as materials handling during the production process are directly related to the existing plant layout.
2) The cost of materials handling will be minimum but the speed of production will be maximum. The time and energy of workers will be saved and can be used for other purposes.
3) flexibility: plant layout should be adaptable or flexible. It should permit modifications/ adjustments with ease and also without much disturbance in the production plant.
4) Low Investment: This principle, suggests that the layout selected should be economical. This means the initial capital expenditure on layout should be minimum. 5) Compactness: In the layout, suitable arrangements need to be made for machines, equipment and facilities.
6) Maintain Sequence of operation: Machinery, storages, services, etc. should be arranged in a logical order so as facilitate smooth & orderly conduct of production activates.
7) Full Utilization of Available Space: This principle suggests that layout arrangement should ensure full utilization of available machine, equipment, space and facilities.
8) Safety and Satisfaction of workers: The layout should convenient to workers. Their safety and convenience should consider on priority basis while deciding layout.
Features of good Plant Layout
1) Adequate space for free movement of workers: In a good plant layout, there should be adequate space for movement of workers as well as of equipment for conduct of production. 2) Safety to workers: In a scientific layout, there should be adequate safety and security to workers against accident or injury, (e.g. provision of first aid boxes and provision fire fighting equipment).
3) Effective production control: Co-ordination, control and Supervision on the production activity should be effectively and easily executed m a good plant layout.
4) Maximum flexibility: A good layout should be adaptable/flexible enough to take care of probable changes in the volume of production, in the range of products manufactured and changes in the methods/Processes of production.
5) Convenience in storing: In a good plant layout, there should stores for in-process material at some convenient place i.e. not I from the place of operations.
6) Minimum materials handling: The arrangement of machines and equipment should be such that minimum materials handling is necessary for low cost processing. 7) Minimum damage and spoilage of material: In a good plant layout, adequate consideration regarding the handling and storage of materials is given. This automatically minimizes damage and spoilage of materials.
TYPES OF PLANT LAYOUT
PRODUCT PROCESS COMBINED STATIC CELLULAR
PRODUCT LAYOUT
• Also called as line layout is used for mass production of standardized products. • A product layout arranges activities in a line according to the sequence of operations.
PRODUCT A LATHES
PRODUCT B DRILLING GRINDING LATHES
PRODUCT C MINING
GRINDING
PRESSES
WIELDING
DEBURRING
ASSEMBLY LINE
ADVANTAGES
• Generate a large volume of products in a short time and makes maximum use of space. • There is a high degree of labour and equipment utilization and are easy to control.
DISADVANTAGES
• Its inflexible and cannot easily respond to changes and requires large capital investment. • Breakdown of one machine disturbs the entire production process of a product.
PROCESS LAYOUT
• In this type of layout the machines of a similar type are arranged together at one place. It is preferred when the product quantity is small. Services that utilize process layouts include hospitals, banks, libraries, and universities. • It is most appropriate for job and batch type of manufacturing systems.
PRODUCT A LATHES
PRODUCT B DRILLING GRINDING WIELDING
PRODUCT C MINING
GEAR SHAPER
PRESSES
WIELDING
DEBURRING
ASSEMBLY LINE
ADVANTAGES
• More flexible Different products can be made without a change in the arrangement and requires limited capital investment • The break down of one machine does not interrupt the entire production flow. • There is high degree of machine utilization, as a machine is not blocked for a single product.
DISADVANTAGES
• More skilled labour is required resulting in higher cost. • Due to lack of straight line sequence of production, it is impossible to maintain the line balancing in production. So the problems of bottleneck and waiting and idle capacity arise.
STATIC LAYOUT
• Project Layout is also known as FIXED POSITION LAYOUT OR PROJECT LAYOUT. • Lack Of Motion. • Identical Product are to be manufactured. • Men's, Machines & Tools. • Minor Components and Sub Assembly.
ADVANTAGE OF STATIC LAYOUT
• • • • • Capital Investment is limited. Simple & Frequent Adjustments are possible. Machines and Men’s can be used. Workers remain busy. Transportation Handling & Cost involved in transportation. • Indentifies itself with the product.
DISADVANTAGES OF STATIC LAYOUT
• • • • Costly to carry Heavy Equipments. Suitable for Special types of Project. Smaller Amount Items are Produced. Limited of Men and Machines in this layout.
COMBINATION LAYOUT
• • • • • Combination of Process + Product. It is also called as Mixed Layout. It’s contains many Components and Parts. Produced of different Types & Size. Parts are Produced on Facilities arranged in Process type of Layout. • Assembling using Product type of Layout.
COMBINATION LAYOUT STRUCTURE
Prod. A
Lathe Drilling
Press Shaping
Milling Grinding
GRINDING
Painting
Prod. B
Prod. C
Inspection
Prod. D
Parhaging
Milling
GROUP TECHNOLOGY
GROUP TECHNOLOGY
• Group Technology is also known as Cellular Layout. • Facilities are grouped together. • Higher degree of Automation. • Facilities are grouped together in cells. • Capable of performing similar types of operations for a group of products.
ADVANTAGES OF GROUP TECHNOLOGY
• • • • • Increase in operators responsibility Reduction in Material Handling Cost Simplified Production Planning. Improvement in visual control Increase in operators responsibility.
DISADVANTAGES OF GROUP TECHNOLOGY
• Reduction in manufacturing flexibility. • Cell becomes out of date when product and processes change. • Duplicated pieces of equipment may be needed so that parts need not transport between cells.
EXAMPLE OF GROUP TECHNOLOGY
?Cellular Manufacturing: • A model for workplace design. • It has become an integral part of lean manufacturing systems. • Cellular Manufacturing is based upon the principals of Group Technology. • Seeks to take full advantage of the similarity between parts. • Similar machines are placed close together.
• Functional layouts are more robust to machine breakdowns. • Have common jigs and fixtures in the same area. • Supports high levels of demarcation. • Machines are grouped together according to the families of parts produced. • The major advantage is that material flow is significantly improved. • Which reduces the distance travelled by materials, inventory and cumulative lead times. • Cellular Manufacturing is most suitable for batch manufacturing.
Factors influencing plant layout
? Nature of product ? Production process ? Type of machinery ? Repairs and maintenance ? Human needs ? Plant environment ? Materials ? Material handling equipments ? Auxiliary services ? Future changes ? Factory building
doc_642000472.pptx
What is Plant Location?
Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per its own requirements and circumstances. Each individual plant is a case in itself. Businessman should try to make an attempt for optimum or ideal location.
FACTORS INFLUENCING PLANT LOCATION
?Proximity to markets ?Proximity to raw materials ?Infrastructural facilities ?Transportation facilities ?Labour and wages ?Climatic condition ?Safety requirements ?Supporting industries & services ?Waste disposal ?Availability & cost of the land
SELECTION CRITERIA
a) Natural or climatic conditions. b) Availability and nearness to the sources of raw material. c) Transport costs: In obtaining raw material and also distribution or marketing finished products to the ultimate users. d) Access to market: Small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas.
e) Availability of Infrastructural facilities: E.g. developed industrial sites, link roads, nearness to railway stations, airports or sea ports, availability of electricity, water, public utilities,& means of communication are important, especially for small scale businesses.
f) Availability of skilled and non-skilled labor and technically qualified and trained managers.
g) Banking and financial institutions are located nearby.
h) Strategic considerations of safety and security should be given due importance.
I) Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a particular location are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and liberalization. Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution control and decentralization of industries. j) Residence of small business entrepreneurs want to set up nearby their homelands.
LOCATIONAL ANALYSIS
Locational analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given enterprise. It consists the following:
(a) Demographic Analysis: It involves study of population in the area in terms of total population (in no.), age composition, per capita income, educational level, occupational structure etc. (b) Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites.
PLANT LAYOUT
PLANT LAYOUT
Plant layout? ? ? ? placement of departments placements of workgroup within departments placement of machines According to J. L. Zundi, “Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized.
Objectives
? Proper and efficient utilization of available floor space ? Proper utilization of production capacity. ? Reduce material handling costs ? Utilize labor efficiently ? Reduce accidents ? Provide ease of supervision and control ? Provide for employee safety and health ? Avoid delay in production process ? Future expansion ? Efficient material handling system ? Rearrangement of plant
PRINCIPLES OF PLANT LAYOUT
1) Principle of Minimum Movement / TransportationPlant layout and materials handling system are closely related as materials handling during the production process are directly related to the existing plant layout.
2) The cost of materials handling will be minimum but the speed of production will be maximum. The time and energy of workers will be saved and can be used for other purposes.
3) flexibility: plant layout should be adaptable or flexible. It should permit modifications/ adjustments with ease and also without much disturbance in the production plant.
4) Low Investment: This principle, suggests that the layout selected should be economical. This means the initial capital expenditure on layout should be minimum. 5) Compactness: In the layout, suitable arrangements need to be made for machines, equipment and facilities.
6) Maintain Sequence of operation: Machinery, storages, services, etc. should be arranged in a logical order so as facilitate smooth & orderly conduct of production activates.
7) Full Utilization of Available Space: This principle suggests that layout arrangement should ensure full utilization of available machine, equipment, space and facilities.
8) Safety and Satisfaction of workers: The layout should convenient to workers. Their safety and convenience should consider on priority basis while deciding layout.
Features of good Plant Layout
1) Adequate space for free movement of workers: In a good plant layout, there should be adequate space for movement of workers as well as of equipment for conduct of production. 2) Safety to workers: In a scientific layout, there should be adequate safety and security to workers against accident or injury, (e.g. provision of first aid boxes and provision fire fighting equipment).
3) Effective production control: Co-ordination, control and Supervision on the production activity should be effectively and easily executed m a good plant layout.
4) Maximum flexibility: A good layout should be adaptable/flexible enough to take care of probable changes in the volume of production, in the range of products manufactured and changes in the methods/Processes of production.
5) Convenience in storing: In a good plant layout, there should stores for in-process material at some convenient place i.e. not I from the place of operations.
6) Minimum materials handling: The arrangement of machines and equipment should be such that minimum materials handling is necessary for low cost processing. 7) Minimum damage and spoilage of material: In a good plant layout, adequate consideration regarding the handling and storage of materials is given. This automatically minimizes damage and spoilage of materials.
TYPES OF PLANT LAYOUT
PRODUCT PROCESS COMBINED STATIC CELLULAR
PRODUCT LAYOUT
• Also called as line layout is used for mass production of standardized products. • A product layout arranges activities in a line according to the sequence of operations.
PRODUCT A LATHES
PRODUCT B DRILLING GRINDING LATHES
PRODUCT C MINING
GRINDING
PRESSES
WIELDING
DEBURRING
ASSEMBLY LINE
ADVANTAGES
• Generate a large volume of products in a short time and makes maximum use of space. • There is a high degree of labour and equipment utilization and are easy to control.
DISADVANTAGES
• Its inflexible and cannot easily respond to changes and requires large capital investment. • Breakdown of one machine disturbs the entire production process of a product.
PROCESS LAYOUT
• In this type of layout the machines of a similar type are arranged together at one place. It is preferred when the product quantity is small. Services that utilize process layouts include hospitals, banks, libraries, and universities. • It is most appropriate for job and batch type of manufacturing systems.
PRODUCT A LATHES
PRODUCT B DRILLING GRINDING WIELDING
PRODUCT C MINING
GEAR SHAPER
PRESSES
WIELDING
DEBURRING
ASSEMBLY LINE
ADVANTAGES
• More flexible Different products can be made without a change in the arrangement and requires limited capital investment • The break down of one machine does not interrupt the entire production flow. • There is high degree of machine utilization, as a machine is not blocked for a single product.
DISADVANTAGES
• More skilled labour is required resulting in higher cost. • Due to lack of straight line sequence of production, it is impossible to maintain the line balancing in production. So the problems of bottleneck and waiting and idle capacity arise.
STATIC LAYOUT
• Project Layout is also known as FIXED POSITION LAYOUT OR PROJECT LAYOUT. • Lack Of Motion. • Identical Product are to be manufactured. • Men's, Machines & Tools. • Minor Components and Sub Assembly.
ADVANTAGE OF STATIC LAYOUT
• • • • • Capital Investment is limited. Simple & Frequent Adjustments are possible. Machines and Men’s can be used. Workers remain busy. Transportation Handling & Cost involved in transportation. • Indentifies itself with the product.
DISADVANTAGES OF STATIC LAYOUT
• • • • Costly to carry Heavy Equipments. Suitable for Special types of Project. Smaller Amount Items are Produced. Limited of Men and Machines in this layout.
COMBINATION LAYOUT
• • • • • Combination of Process + Product. It is also called as Mixed Layout. It’s contains many Components and Parts. Produced of different Types & Size. Parts are Produced on Facilities arranged in Process type of Layout. • Assembling using Product type of Layout.
COMBINATION LAYOUT STRUCTURE
Prod. A
Lathe Drilling
Press Shaping
Milling Grinding
GRINDING
Painting
Prod. B
Prod. C
Inspection
Prod. D
Parhaging
Milling
GROUP TECHNOLOGY
GROUP TECHNOLOGY
• Group Technology is also known as Cellular Layout. • Facilities are grouped together. • Higher degree of Automation. • Facilities are grouped together in cells. • Capable of performing similar types of operations for a group of products.
ADVANTAGES OF GROUP TECHNOLOGY
• • • • • Increase in operators responsibility Reduction in Material Handling Cost Simplified Production Planning. Improvement in visual control Increase in operators responsibility.
DISADVANTAGES OF GROUP TECHNOLOGY
• Reduction in manufacturing flexibility. • Cell becomes out of date when product and processes change. • Duplicated pieces of equipment may be needed so that parts need not transport between cells.
EXAMPLE OF GROUP TECHNOLOGY
?Cellular Manufacturing: • A model for workplace design. • It has become an integral part of lean manufacturing systems. • Cellular Manufacturing is based upon the principals of Group Technology. • Seeks to take full advantage of the similarity between parts. • Similar machines are placed close together.
• Functional layouts are more robust to machine breakdowns. • Have common jigs and fixtures in the same area. • Supports high levels of demarcation. • Machines are grouped together according to the families of parts produced. • The major advantage is that material flow is significantly improved. • Which reduces the distance travelled by materials, inventory and cumulative lead times. • Cellular Manufacturing is most suitable for batch manufacturing.
Factors influencing plant layout
? Nature of product ? Production process ? Type of machinery ? Repairs and maintenance ? Human needs ? Plant environment ? Materials ? Material handling equipments ? Auxiliary services ? Future changes ? Factory building
doc_642000472.pptx
