NIT Kurukshetra
UNIT-2
Plant Layout and Material Handling
1
NIT Kurukshetra
Process Selection
•Variety ?
How much
•Flexibility ?
What degree
•Volume ?
Expected output
Answer to these questions will serve as a guide to select an appropriate process.
2
NIT Kurukshetra
3
Financial servicesFinancial services
Information TechnologyInformation Technology
HospitalityHospitality
NIT Kurukshetra
Process Types
•Job shop
Small scale, low volume, high job variety, high process flexibility, high unit
cost, high customization
•tool & dye shop, Veterinarian’s clinic, Restaurant
4
NIT Kurukshetra
•Batch
moderate volume, moderate variety, moderate
flexibility, moderate unit cost
•cookies, cake, movie theatre, paint, ice cream, soft drink,
magazines, books.
5
Batch production: a group of identical
products are produced simultaneously.
It is up to the manufacturer to decide
how big the batch will be, and how often
these batches will be made
NIT Kurukshetra
Process Types
•Repetitive/assembly line
High volumes, low variety, low flexibility, low cost
•TV, Pencil, PC, phones, Automobile
6
NIT Kurukshetra
• Continuous:
Very high volumes of non-discrete goods, very low
variety, very low flexibility, very low cost
•steel, sugar, salt, electricity supply
discrete good is one that can be bought and sold
only in integer units.
7
NIT Kurukshetra
Process Types
8
NIT Kurukshetra
Check?
Fill the table with-very low, low, moderate high, very high
9
NIT Kurukshetra
Facility Layout
10
NIT Kurukshetra
11
NIT Kurukshetra
Plant Layout
•The configuration of departments, work centers, and equipment, with
particular emphasis on movement of work (customers or materials)
through the system.
•The basic objectives of layout is to facilitates a smooth flow of work, The basic objectives of layout is to facilitates a smooth flow of work,
material & information through the systemmaterial & information through the system
12
NIT Kurukshetra
What Is Layout Planning?
Layout planning is deciding the best physical arrangement of all resources
within a facility
•Facility resource arrangement can significantly affect productivity
•Two broad categories of operations:
–Intermittent processing systems – low volume of many different products
–Continuous processing systems – high volume of a few standardized products
13
NIT Kurukshetra
Need for layout design
14
Inefficient operations
For Example:
High Cost
Bottlenecks
Changes in the design
of products or services
The introduction of new
products or services
Accidents
Safety hazards
NIT Kurukshetra
Need for layout design
15
NIT Kurukshetra
Basic layout type
Product layout
Process layout
Fixed-Position layout
16
NIT Kurukshetra
Product Layout/ Line layout
•In this type of layout, machines and equipment are arranged in the
sequence of the manufacturing operation required for the product.
•The raw materials are fed at one end and taken out as the finished
product on the other.
17
NIT Kurukshetra
Product layout
•Layout that uses standardized processing operations to achieve smooth, rapid, high-
volume flow
•car wash/ assembly line
18
NIT Kurukshetra
Product layout
19
NIT Kurukshetra
20
NIT Kurukshetra
Product layout
Advantages
•High rate of output
•Low unit cost
•Labor specialization
•Low material handling cost
•High utilization of labor and equipment
•Established routing and scheduling
21
NIT Kurukshetra
Product layout
Disadvantages
•Creates dull, repetitive jobs
•Poorly skilled workers may not maintain equipment or quality of output
•Fairly inflexible to changes in volume
•Highly susceptible to shutdowns
•Needs preventive maintenance
•Individual incentive plans are impractical
22
NIT Kurukshetra
Suitability
•Mass production of standardized products.
•Simple and repetitive manufacturing processes.
•Reasonably stable demand for product.
•Interchangeability of parts.
•Continuous supply of materials.
•Large automobile assembly plants, food-processing chains
23
NIT Kurukshetra
Process Layout or Functional layout
•In process layout the arrangement of facilities are grouped together
according to their functions machines.
•All machines performing similar type of operations are grouped at one
location in the process layout
24
NIT Kurukshetra
• Process layout is a design for
the floor plan of a plant which
aims to improve efficiency by
arranging equipment according
to its function.
• The production line should
ideally be designed to eliminate
waste in material flows,
inventory handling and
management.
25
NIT Kurukshetra
•In process layout, the work stations and machinery are not
arranged according to a particular production sequence.
•Instead, there is an assembly of similar operations or similar
machinery in each department (for example, a drill
department, a paint department, etc.)
26
NIT Kurukshetra
•The process layout is particularly useful where low volume of
production is needed.
•If the products are not standardized, the process layout is more
low desirable, because it has creator process flexibility than other.
• In this type of layout, the machines and not arranged according to
the sequence of operations but are arranged according to the
nature or type of the operations.
•This layout is commonly suitable for non repetitive jobs.
27
NIT Kurukshetra
Process layout
•Layout that can handle varied processing requirements
28
NIT Kurukshetra
Process layout
Advantages
•Can handle a variety of processing requirements
•Not particularly vulnerable to equipment failures
•Equipment used is less costly
•Possible to use individual incentive plans
31
NIT Kurukshetra
Process layout
Disadvantages
•In-process inventory costs can be high
•Challenging routing and scheduling
•Equipment utilization rates are low
•Material handling slow and inefficient
•Complexities often reduce span of supervision
•Special attention for each product or customer
•Accounting and purchasing are more involved
32
NIT Kurukshetra
Suitability
•Product are not standardized
•Quantity produced is small
•Frequent change in design and style of product.
•Job shop type of work is done.
33
NIT Kurukshetra
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.
34
NIT Kurukshetra
35
NIT Kurukshetra
Fixed position layout
•In fixed-position layout, the item being worked on remains
stationary, and workers, materials, and equipment are
moved about as needed.
•Weight, size, bulk, or some other factor makes it undesirable
or extremely difficult to move the product.
• Fixed-position layouts are used in large construction
projects (buildings, power plants, dams), shipbuilding, and
production of large aircraft and space mission rockets
36
NIT Kurukshetra
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.
37
NIT Kurukshetra
•A production technique used to assemble products that
are too large, bulky, or fragile to safely or effectively move
to a location for completion.
•In a fixed position layout, personnel, supplies, and
equipment are brought to the site where the product will
be assembled, rather than the product being moved
through an assembly line or set of assembly stations.
38
NIT Kurukshetra
Fixed-Position Layout
•Used when product is large
•Product is difficult or impossible to move, i.e. very large or
fixed
•All resources must be brought to the site
•Scheduling of crews and resources is a challenge
39
NIT Kurukshetra
Fixed position layout
40
NIT Kurukshetra
41
NIT Kurukshetra
Fixed position layout
42
NIT Kurukshetra
Facility Location
•Three most important factors in real estate:
1.Location
2.Location
3.Location
•Facility location is the process of
identifying the best geographic location for
a service or production facility
43
NIT Kurukshetra
Location Strategy
•Infrequent decision based on:
–Demand outgrowing existing capacity.
–Local changes in labor productivity, exchange
rates, costs, local attitudes.
–Shifts in demographics and customer demands.
•Location options:
–Don’t move, expand an existing facility.
–Maintain current sites, add another facility.
–Close an existing facility and move to another
location.
44
NIT Kurukshetra
Factors That Affect Location
Decisions
•General factors.
•Global Region or Country decision.
•Sub-region or state decision.
•Community/site decision.
45
NIT Kurukshetra
General Factors
•Globalization.
•Market (customer) proximity
–High population areas, close to JIT partners
•Suppliers proximity
–Transportation costs, perishability, bulk
•Labor proximity and productivity
–Proximity—local wage rates, unions, special skills
availability
–Productivity—low cost may be linked to low
productivity and vice versa)
•Competitor proximity
–Clustering—due to a major resource in the area). 46
NIT Kurukshetra
Global Region or Country
•Key International Locations
–North America, Europe, Pacific Rim.
•Key Considerations
–Political/legal concerns.
–Cultural issues (including business).
–Infrastructure: supplies, communication, utilities.
–International trade issues.
•Exchange rates.
–Market access issues.
–Labor availability, attitudes, productivity, costs.
–Quality-of-life issues.
47
NIT Kurukshetra
Sub-region or State
•Key factors:
–Government incentives.
–Corporate desires
–Market and demographic factors.
–Proximity to raw materials and customers
–Attractiveness of region (culture, taxes, climate, etc.)
–Environmental regulations of state and town.
–Economic conditions.
–Costs of key inputs and advertising media.
–Cost and availability of utilities.
–Labor availability, costs, attitudes towards unions.
48
NIT Kurukshetra
Community/Site
•Factors:
–Financial incentives.
–Site size and cost.
–Transportation options and costs.
–Utility options and costs.
–Nearness of services/supplies needed.
–Legal climate and community receptiveness.
•Zoning restrictions
–Environmental concerns.
•Significant trends:
•Moving to the suburbs
•Industrial parks
•Moving closer to end user (JIT)
49