2. facility planning.ppt

7/27/2019 2. Facility planning.ppt

1/23

Facility planning

Location planningLay out planning


2/23

Manufacturing companies & Design centers all over the world

are vying with each other to set up their plants in India & more

so in BangaloreCompanies in Service sector also have jumped into the

bandwagon

The reason .

The main considerations are

Business opportunities &

Cost of operations

Fixed costs Land, Buildings, Equipment

Location Taxes etc.

Variable costsWages, Power & Water, Transport,

Materials etc.

Plant Location


3/23

Plant location-Points for consideration

Nearness to source of Raw material & components

Nearness to Potential marketAvailability of power & water

Availability of Labor (unskilled, skilled & knowledge worker)

Transport & Communication facility

Integration with other group companies

Industrial policy of Governmenta) Providing infrastructure

b) Investment subsidy

c) Tax Concessions

d) Concessional Finance

Climate (General & political)Recreation Facilities

Educational Facilities

When all these are favorable what matters is total cost of operation


4/23

Worked out example

Data A B C

Labor cost/unit 0.75 1.1 0.8

Plant construction cost 46L 39L 40L

Mat cost/unit 0.43 0.60 0.40

Power charges/year 30000 26000 30000

Water charges/year 7000 6000 7000

Transportation cost/unit 0.02 0.10 0.10

Taxes/year 33000 28000 63000

Determine the most suitable location. All figures are in Rs.


5/23

LAY OUT PLANNING

LAY OUT is the physical arrangement of various

departments with in the organization and location ofequipment & other facility with in the department


6/23

A good Lay out should ensure

Smooth flow / Minimum Travel

Maximum FlexibilityMaximum use of volume

Maximum visibility

Maximum Accessibility

Maximum Security & Safety

Minimum Handling

Minimum Discomfort

Good Appearance

FEATURES / REQUIREMENTS / OJECTIVES

OF A GOOD LAYOUT


7/23

Types of lay out

Line type lay out (Product Layout)

Functional lay out (Process Lay out)

Fixed position lay out

Cellular lay out ( Group Technology )


8/23

PRODUCT LAYOUT PROCESS LAYOUT

Facilities arranged in a line Similar facilities grouped together

Line flow of product Zigzag flow of product

For volume/Single product For variety/Multi product

Mechanized Handling is easy Mechanized handling is difficult

High initial investment Low investmentLess skilled labour More skilled labour

Smooth flow Interrupted flow

Suitable for Suitable for

Made to stock situation Made to order Situation

Less WIP WIP- moreBreak down of Not so serious

machinesserious

FlexibilityLess Flexibility - More

COMPARISION


9/23

Materials

Equipment

Workforce

Product

Aircraft Assembly


10/23Mahadevan (2007), Operations Management: Theory & Practice, Pearson Education

Fixed Position LayoutExample from Thermax



L LMD G

Product LayoutAn example

L MD G

L LD G

Product C

Product A

Product B



Process LayoutAn example

L L L L

M M

M M

D D

D D

D D

G G G

L L L L

Product A

Product C

Product B



Design of Process LayoutsAlternatives

Qualitative Method ( for services )Closeness required between a pair of functions

Quantitative Method ( for production )Uses quantitative measures for assessing the impact of a

layout design

Load distance analysis method



Department 1

Department 2

Department 3

Department 4

Department 5

Department 6

O

U

A

U

O

A

O

U

O

I

X

O

E

U

A

Value Closeness

A Absolutely necessary

E Especially Important

I Important

O Ordinary closeness OK

U Unimportant

X Undesirable

Nearness Diagram (Example)


15/23

DOCTORS REST ROOMS

PHYSIOTHERAPY

X-RAY

LAB

CANTEEN

ORTHOPAEDICS

OBSTETRICS & GYNAECOLOGY

CASUALTY

MORTUARY

PHARMACY

Nearness Diagram (for a Hospital Block)

A Absolutely necessary

E Essential

I Important

O OK

U UndesirableNURSES REST ROOMS

U

U

U

U

U

U

U

U

U

A

A

WARDSA

A

A

A



Group Technology LayoutAn example

L

L

L

L

MM

M

M

D D

D D

D

D

G G

G

L

L

L

L

Cell 1

Shafts

Cell 3

Pinion gears

Cell 2

Gears

Cell 4

Bearings

M

DL

L D

LM

L

D

Cell 7

PanelsCell 6

Castings &

Forgings

Cell 5

Bolts & Nuts


17/23

Shafts

Cell 1


18/23

Gears

Cell 2


19/23

Pinion gears

Cell 3


20/23

Bearings

Cell 4


21/23

Bolts & Nuts

Cell 5


22/23

Castings & Forgings

Cell 6


23/23

Panels

Cell 7

2. facility planning.ppt

Documents