Intro to production management and plant layout

ppt of Intro to production management and plant layout under engineering economics and management

1. Introduction to production management and plant layout

2. Definition of Production Management: “Production management is the management of those resources and activities of the business that are required to produce goods or services for sale to customers at a profit .” The production management is one of the prime buisness activites . It involves the value addition through converting raw materials into finished goods with step by step processing.

3. Objectives: To locate the unit at appropriate location so that transportation cost of inputs and outputs of the materials and travel cost of employees are reduced. To develop an ideal plant layout to minimise internal transport cost. To adopt appreciate cost effective production Technology. To select appropriate machines show that the assets turnover can be maximized. To adopt appropriate quality control resulting into cost control and cost reduction.

4. Functions: production planning Routing Loading and scheduling Dispatching Follow up or expenditing

5. Plant layout : “Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized”.

6. Objectives: Efficient utilization of available floor space. To ensure that work proceeds from one point to another point without any delay. Provide enough production capacity. Reduce material handling costs. Reduce hazards to personnel. Utilize labor efficiently.

7. Types of Plant Layouts: Process layout Product layout Static or project layout Combined layout

8. Process layout: This type of plant layout is useful when the production process is organized in batches. Personnel and equipment to perform the same function are allocated in the same area. The different items have to move from one area to another one, according to the sequence of operations previously established. The variety of products to produce will lead to a diversity of flows through the facility.

9. Product layout: Also called straight-line layout, line processing layout,flow like layout or layout for serialized manufacture. Product layout involves the arrangement of machines in one line, depending upon the sequence of operations. Example: Paper mill

10. Fixed Position layout: In fixed-position layouts, the item being worked on remains stationary , and workers, materials, and equipment are moved about as needed . Fixed-position layouts are widely used in farming, firefighting,road building, home building, remodeling and repair, and drilling for oil. In each case, compelling reasons bring workers, materials , and equipment to the “product’s” location instead of the other way around .

11. Combined layout: In many manufacturing units, several products are produced in repeated numbers with no likelihood of continuous production , combined layout is followed . E.g . Soap industry, all inputs are almost manufactured in separate units vise glycerin , water treatment, fragrance etc.

12. Factors affecting plant layouts Type of production production system scale of production type of Machines Availability of total floor area

13. Plant Location: Plant location decision includes to choose an ideal plant location is one where the cost of the product is kept to mimimum with a large market share, the least risk and maximum social gain . The ideal location is that which permits the lowest cost in the production and distribution of a product or a service.

14. Factors affecting Plant Location: Raw materials availability Nearness to market Availability of labour Fuel and power Transport facilities Personal factors Government policy Ethos of Locality