plant location layout & material hadling tilak

8/10/2019 Plant Location Layout & Material Hadling Tilak

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DR MAHADEO GHADGE

[email protected]


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The performance of anorganization is considerably

affected by its location.

Location decision affect, most of thefixed costs as well as variable costs.

Therefore, the efficiency,

effectiveness, productivity &

profitability of the facility are also

affected by the location decision.


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Weber German Economist

Theory consider major two

important factor affectingindustrial location

Primary Factor (Regional factors)

Secondary factor (agglomerative

factor)


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TRANSPORTATION COST LABOUR COST

TRANSPORTATION COST Distance to be covered The weight to be transportedWeber classified raw material into two

broad categories1-Localised raw material2-ubiqities material


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Localized raw material available in specificregion . For example Cotton , Sugarcane ,Jute

Ubiquities material

Which are avaiableevery where for example .water ,sand

Localized material further classified as

Pure material- which do not lose the weight

in process Gross raw material-which lose weight in

process , for example aromatic compound


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Webers theory assume that

Certain labour centre's where cheap

& skilled labour available (Unlimited

supply of workforce)

If labour cost is not significant then

transportation cost play critical role inlocation decision


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Consider the possibility of morethan one location for an industry

For example

Paper Industry

Plant for pulp process near forest

Paper manufacturing unit, nearmarket


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Unreal ist ic & oversimp l i f ied-

Transportation cost other factor such

as road quality of goods are notconsidered

Unlimited labour supply that is not

possible Select ion o f factor is arbi t rary

Climatic condition, government policy

are not considered


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Availability of raw materialMarket

Labour supplyTransport & communication

Fuel & power

Government policyClimatic condition


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What Is Layout Planning?

Layout planning is determining the best

physical arrangement of resources within a

facility


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Why is layout planning important?

Eliminates unnecessary costs for space and

materials handling

Reduces work-in-process inventory Produces goods and services faster

Reduces distances that workers must travel

in the workplace

Improves communication and morale

Increases retail sales

Improves brand image


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Types of Layouts

Process layouts: Group similar resources together

Product layouts: Designed to produce a specific product,

or a small number of products efficiently

Hybrid layouts: Combine aspects of both process and

product layouts

Example: cellular layout

Fixed-Position layouts: Product is too large to move

Examples: building construction, shipyard Resources must be brought to where they are needed


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Process and Product Layouts


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Process Layouts

Used in project and batch manufacturing(intermittent processes)

Also used in department stores, offices,hospitals, and universities

Able to make or sell a variety of products Use general purpose resources Less automation than in product layouts Material handling costs per unit are higher than

in product layouts Scheduling production is more complex than in

product layouts


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Process Layout Example

Block layout for a sports medicine clinic

A

Radiology

B

Laboratory

C

Lobby &Waiting

D

ExaminingRooms

E

Surgery &Recovery

F

PhysicalTherapy


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Product Layouts

Used in assembly lines and continuous manufacturing

(repetitive processes)

A cafeteria line is a product layout

In manufacturing, product layouts are used to produce

one product, or a small group of products, efficiently Uses special purpose resources

More automation than in process layoutsMaterial

handling costs per unit are lower than in process

layouts

Scheduling production is simpler than in process

layouts


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FACTOR AFFECTING LAYOUT Nature of the product-Heavy product stationary layout; light product-line

layout Volume of product-Standard product mass production-line layout; variable

product variable quantity functional layout Type of industry process

1-intermittent functional layout

2- continuous- line layoutTypes of p roduct ion

1-job order 2- Batch production 3-mass production


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Types o f mach ine

Heavy machinery stationary layout;

Human factor &wo rk ing condi tion

Layout consider safety ,comforts rest

rooms


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OBJECTIVE OF LAYOUT

Minimization of material handling cost

Savings in shop floor space Increased in output & reduced work in process

Safety in working & reduced hazards

Increase productivity & minimum waste Smooth flow of processes

Reducing delays, manufacturing time & cutting

down maintenance cost

Overall integration of men, material, machines

& supporting activities.


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TYPES OF LAYOUTS

Layout manufacturing system is classified into

following categories Product or Line Layout

For example -automobile

Process or Functional Layout

For example bank , hospital ,workshop

Project or Fixed Position Layout

For example- aero plane manufacturing


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Material Handling

Material handlingis the function of

moving the right material to the right

place in the right time, in the right

amount, in sequence, and in the rightcondition to minimize production cost.


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Objectives of Material Handling

To reduce unit costs of production. Maintain or improve product quality

Reduce damage of materials

Promote safety and improve workingcondition

Enhanced productivity

Better use of material handling tools

Well-organized store keeping

Lower investment in work in process


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Overview of Material Handling Equipment

Material handling equipment includes:

Transport Equipment: industrial trucks,

conveyors, cranes and hoists.

Storage Systems: bulk storage, rack

systems, shelving and bins, drawer

storage, automated storage systems.

Identification and Tracking systems

E l f M d ti


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Example of Mass production

24

H d i A bl Li


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Hyundai Assembly Line

25


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Variety of products

and services

How much

Flexibility of the process; volume,mix, technology and design

What type and degree

Volume

Expected output

Job Shop

Batch

Repetitive

Continuo

Questions Before Selecting A

Process


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Dimension Job Shop Batch Repetitive Continuous

Job variety Very High Moderate Low Very low

Process

flexibility

Very High Moderate Low Very low

Unit cost Very High Moderate Low Very low

Volume of

output

Very low Low High Very high

Product Process Matrix


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ProductVariety

High Moderate Low Very Low

Equipmentflexibility

High Moderate Low Very Low

LowVolume

ModerateVolume

HighVolume

Very highVolume

Job

Shop

Batch

Repetitive

assembly

Continuous

Flow

Variety, Flexibility, & Volume


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Process Type High variety Low variety

Job Shop Appliancerepair

Emergency

room

Batch Commercialbakery

Classroom

Lecture

Repetitive Automotiveassembly

Automatic

carwash

Continuous

(flow)

Oil refinery

Water

purification

Product Process Matrix


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Product-Process Matrix

Flexibility-Quality Dependability-Cost

Continuous

Flow

Assembly

Line

Batch

Job

Shop

LowVolume

One of a

Kind

MultipleProducts,

Low

Volume

Few

MajorProducts,

Higher

Volume

High

Volume,High

Standard-

ization

Book

Writing

Movie

Theaters

Automobile

Assembly

Sugar

Refinery

Flexibility-

Quality

Dependability-

Cost


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Process Layout Example

Block layout for a sports medicine clinic

A

Radiology

B

Laboratory

C

Lobby &Waiting

D

ExaminingRooms

E

Surgery &Recovery

F

PhysicalTherapy


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Process Layout

Process Layout - work travels

to dedicated process centers

Milling

Assembly

& Test Grinding

Drilling Plating


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36

Process Layout

Gear

cutting

Mill Drill

Lathes

Grind

Heat

treat

Assembly

111

333

222

444

222

111

444

111 33311112222

222

3333

111

444

111


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Cellular Layouts

Cellular Manufacturing Layout in which machines are grouped into a cell that

can process items that have similar processingrequirements. A product layout is visible inside each cell.

Group Technology The grouping into part families of items with similar

design or manufacturing characteristics. Each cell isassigned a family for production. This limits theproduction variability inside cells, hence allowing for a

product layout.


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A Group of Parts

Similar manufacturing characters

Basic product family and machine data


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Product families

Machines

1 2 3 4 5 6 7 8

1 X X

2 X X X

3 X X X

4 X X X

5 X X X

6 X X

7 X X

8 X X X

Machines and product families reorganised into cells


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Product families

Machines

3 6 8 5 2 4 1 7

4 X X X

Cell A

1 X X

6 X X

3 X X X

Cell B

8 X X

2 X X X

5

Cell C

X X X

7 X X


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Dimension Process Cellular

Number of moves

between departments

many few

Travel distances longer shorter

Travel paths variable fixed

Job waiting times greater shorter

Amount of work in

process

higher lower

Supervision difficulty higher lowerScheduling complexity higher lower

Equipment utilization Lower? Higher?

Process vs. Cellular Layouts


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Cellular Manufacturing Layout

-1111 -1111

222222222 - 2222

Assembly

3333333333 - 3333

44444444444444 - 4444

Lathe

Lathe

Mill

Mill

Mill

Mill

Drill

Drill

Drill

Heat

treat

Heat

treat

Heat

treat

Gear

cut

Gear

cut

Grind

Grind


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Basic Layout Formats

Group Technology LayoutSimilar to cellular layout

Fixed Position Layout

e.g. Shipbuilding

Part Family W Part Family X

Part Family Y

Part Family Z

Assemble Y,W Assemble X,Z

Final Product

plant location layout & material hadling tilak

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