Production and Operations Management

What is a Plant Layout?

Plant layout is a plan of optimum management of facilities which include; personnel, operating equipment, storage space, material handling equipment, and all other support services

It includes the arrangement and location of work centres and various service centres like inspection, storage, and shipping within the manufacturing/factory building.

Plant Layout identically involves the allocation of space and the arrangement of equipment in such a manner that overall operating cost is minimised.[James Lundy]

It begins with plantlocationand continues through three categories, namely:

The layout of departments within the site
The layout of items within the department(s).
Layout of individual workplaces.

Stages of the procedure of Plant Layout

Objectives
Information gathering
Production and flow analysis
Compilation of overall plan
Support services
Implementation and evaluation.

Plant Layout Procedure

Phase 1 - Information gathering

Determine what will be produced
Determine how many products will be produced
Determine what components will be made or purchased
Determine required operations
Determine the sequence of operations
Set time standards for each operation

Phase 2 Production and Flow Analysis

Determine the number of machines
Balance production lines
Study the flow requirements
Determine activity relationships
Layout each workstation

Phase 3 - Support Services

Identify the needs for personal and plant services
Identify office needs
Develop total space requirements
Select material handling equipment
Develop plot plan and building shape

Phase 4 - Implementation and Evaluation

Construct master plan
Seek input and adjustment
Seek approvals
Install
Start up
Follow up

Principles of Plant Layout:

Integration
Minimum distance
Maximum space utilisation
Process Flow
Maximum flexibility
Safety, security and satisfaction
Minimum material handling

Layout evaluation:

Objectives of a Good Plant Layout:

The main objectives are revealed through the attainment of the following facts;

Congestion reduction
Elimination of unnecessary occupied areas
Reduction of administrative and indirect work
Improvement on control and supervision
Better adjustment of changing directions
Better utilisation of the workforce, equipment and services
Reduction of material handling activities and stock in process
Reduction on parts and quality risks
Reduction on health risks and increase on workers safety
Ensuring that workers satisfaction is increased
Reduction on delays and manufacturing time as well as production capacity

These factors above cannot be reached simultaneously.

Factors influencing Facility Layout:

Management/Managerial Policy and Decisions
Nature of plantlocation
Type of machinery used
Nature of product to be manufactured or produced
Method of production
Minimum movement
The arrangement of materials handling equipment.
Continuance
Availability of total floor area
Type of industry
Possibility of future expansion
Flexibility

Principles of Layout

The principle of minimum travel (from suppliers, to the airport, to customers, etc)
The principle of sequence
Effective use of available space
The principle of usage
The principle of safety
Maximum visibility
The principle of flexibility
The principle ofminimum investment
Maximum accessibility
Overall integration of factors

A good layout is one that integrates men, materials, machines and supporting activities and others in a way that the best compromise is obtained. no layout can satisfy each and every principle of a good layout.

Minimum Movement

A good layout is one that permits the minimum movement between the operations. The plant and machinery in case of product layout and departments in case of process layout should be arranged as per sequence of operations of most of the products.

A straight line is the shortest distance between any two points. men and materials should be made to move along the straight path.

Uni-direction flow

A good layout is one that makes the materials move only in the forward direction, towards the completion stage.

When a straight line flow is not possible, other flows like a U-shaped flow, circular or zig-zag flow may be adopted but the layout must ensure that materials move in a forward direction.

Types of Plant Layout:

Product layout or line processing layout or flow-line layout
Process layout or functional layout or job shop layout
Fixed position layout or static layout
Cellular manufacturing (CM) layout or Group Technologylayout
Combination layout or Hybrid layout or Mixed layout
Service Facility Layout

Product Layout:

It involves the arrangement of machines in one line depending on the sequence of operations.
The material is fed into the first machine and finished products come out of the last machine. e.g. Sugarcane to sugar, Bamboo to paper, plastic to plastic smart cards production
Emphasis is on special purpose machines so high investment is needed.

Advantages of a good, well planned and designed Layout:

1.Labour costs

Increase in productivity with more units being produced per man hour.
Reduction in the number of workers.
Minimal movement between operations.

2.Production control

Increased production rate.
Provision of convenient and adequate storage points.
Improved ability of forecasting manufacturing time and delivery.

3.Supervision

Lesser requirement of supervision.
Reduction in time spent on inspection.
Reduction in cost of inspection.

4.Other manufacturing costs

Reduced consumption of power.
Minimisation of scrap and defective products.
Better quality due to reduced handling.
Reduced costs of maintenance.
Improved utilisation of materials.

5.Workers

Reduction in the number of those handling production related paraphernalia.
Reduced effort, stress and strain.
Better safety and less chance of accidents.
Improved productivity leading to higher wages.
Increased morale and motivation.
Improved health and welfare.

Process Layout:

Involves the arrangement of similar machines in a group in one department/one area according to the functions performed in the department e.g. welding machines.

Advantages of a Good Process Layout:

Reduced investment in machines if they are general purpose machines.
Flexibility in production
Better and more efficient supervision is possible through specialisation
Better utilisation of men and machines
Full and efficient utilisation of equipment

Disadvantages a Bad Process Layout:

Fixed position layout:

Major components remain in a fixed location.
The movement of men and machines to the product is advisable because the cost of moving them would be less than the cost of moving the product which is very bulky.
For example construction of buildings or bridges, ship-building etc.

Cellular Manufacturing(CM) Layout:

Machines are grouped into cells, and each group makes a family of parts which require similar operation and service. It lies in between process layout and line layout.

Importance of Cellular Plant Layout:

Economies in Handling
Effective use of available area
Minimisation of production delays
Improved quality control
Better production control
Better supervision
Improved utilisation of labour
Improved employee morale

Why Layout problems exist

Enlargement or contraction of existing departments
Movement of a department due to changes in the design of the product.
Addition of a/some new department(s)
Replacement or addition of a facility/machinery.

1.Nature of the product: The nature of the product to be manufactured has a significant influence on plant layout. Small and light products can be moved from one machine to another with minimum effort and time and therefore line layout would be more suitable. Stationary layout would be suitable for heavy and bulky products. In case of production of large variety of non-standardized products, process layout is ideal.

2.Production volume: Line layout should be preferred if standardized commodities are manufactured on a large scale. Functional layout is suitable if production is based on customers orders. It is better suited for low volume job production.

3.Location of the site: The topology and size of the site influences the choice of a particular layout. The idea is to maximise the utilisation of space. Layout should also suit the factory building. The positioning of elevators, stairways, parking lots and storage points also influence the layout.

4.Type of machines: Stationary layout is preferable if machines are heavy and emit more noise. Such heavy machinery can be fitted on the floor. Adequate space should be provided for the location of machines and also there should be sufficient space between them to avoid accidents.

5.Climate: Temperature, illumination, ventilation should be considered while deciding on the type of layout. These factors should be considered in order to improve the health and welfare of employees.

6.Service facilities: The layout should provide for the comforts and welfare of the employees. It should have adequate provision for rest rooms, drinking water, lavatory. There should be sufficient space for free movement of workers.

7.Safety of employees: While deciding on a particular type of layout, the safety of employees should be given importance. The layout should provide for obstruction free floors, non-slippery floors, protection against dangerous fumes, excess heat, strong odours etc.

8.Type of production: Layout plans differ according to the type of production. In case of job orders, production of non-standardised products are undertaken, and therefore functional or process outlet is suitable. Line layout would be suitable when there is mass production of standardized goods.

9.Type of process: In the case of intermittent type of production (bi-cycle manufacturing, electronics), functional layout is suitable. For synthetic type of Production (cement and automobile industries), line layout is preferable.

10.Management policies: Policies of the management relating to type of product, quality, scale of production, level of plant integration, type of production, possibility of future expansion etc., influence the type of layout to be adopted.

Characteristics of an Efficient Layout

The designing of a plant layout should be such that it should maximise the return and minimise the cost of production.

The following are the characteristics of a plant layout:

1. Smooth flow of production

Plant layout should be in such a way that there must be a smooth flow of production. Raw materials and workers must have access to each machine without any difficulty and delay.

2. Maximum utilisation of available space

An efficient plant layout must be such that may utilize the maximum of the space available.

3. Facilitating the movement of men, materials and machines, etc.

There must be sufficient space left in between different machines so that raw materials, workers and machines move very easily from one place to another, without the fear of accident.

4. Involves minimum handling

The various machines in a good layout must be arranged in such a manner that the product of one operation may pass on to the next operation with a minimum of handling. It will reduce wastage of raw materials and labour hours.

5. Provides better working conditions

A good plant layout must have facilities such as water, ventilation, retiring room, etc., in the plant. It should also safeguard the health of the workers.

6. Flexibility

A good layout must be flexible enough so as to incorporate any change in the management policies. It must be capable of incorporating, without major change, new equipment to meet technological changes and or progress, or increased production requirements or to eliminate waste.

7. Location of stores

The stores/storage in a plant must be located in such a place from where raw materials, tools, equipment and other materials may be supplied to the departments concerned easily, without any delay.

8. Facilitates supervision and control

The position of workers must be arranged in such a way that it facilitates supervision, coordination and control.

9. Provision of safety

There must be complete safety for workers engaged on a machine(s). Necessary instructions must be given to them about the risks involved while working on certain types of machines. The Provisions of Factories Act must be followed at all times.

10. Co-ordination and integration

If the plant layout is efficient enough, it is possible to achieve maximum with coordination and integration among men, machines and materials.

A decision to manufacture some new or modified products may necessitate a reorganisation of the existing plant or provision of additional facilities. The reasons for change are due to variation in the level of demand, change in the location of product markets, change in style and obsolescence or failure of existing equipment.

Thus, development of a proper layout for a plant calls for careful planning. Such planning involves considerations of the technical aspects of the machinery and equipment and processes of manufacture, etc. Company related Management executives can benefit considerably by involving a highly qualified engineer(s) and or maybe management consultants while designing a plant layout. In this way, plant layout is a joint product of both the disciplines, namely, engineering and management.

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Production and Operations Management - Plant Layout (2024)

﻿What is a Plant Layout?