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TK090207 :
Manajemen Operasi
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TEACHING TEAM TEACHING TEAM
(COORDINATED BY DR. (COORDINATED BY DR. NINIEK NINIEK FAJAR FAJAR PUSPITA PUSPITA, ,
M.ENG) M.ENG)
MEMBER MEMBER
Topic: Plant Layout_Tataletak Pabrik
MEMBER: MEMBER:
PROF. DR. DANAWATI HP PROF. DR. DANAWATI HP
AUGUST, AUGUST, 20 2011 11
NO. V NO. V
GE GAP Guidelines_A Publication of GE Global
Asset Protection Services
GAP.2.5.2 September 3, 2001
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LESSON 7_PLANT LOCATION
AND LAYOUT _Abha Kumar
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INTRODUCTION
In the previous unit you have learnt how the entrepreneur
conducts the detailed analysis comprising of technical,
financial economic and market study before laying down a
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financial, economic and market study before laying down a
comprehensive business plan. For implementation of this plan,
he has to take various crucial decisions namely location of
business, layout (the arrangement of physical facilities),
designing the product, production planning and control and
maintaining good quality of product. This lesson deals with
various aspects of plant location and layout. Investment in
analyzing the aspects of plant location and the appropriate
plant layout can help an entrepreneur achieve economic p y p p
efficiencies in business operations. These decisions lay the
foundation of the business of small entrepreneurs.
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Tujuan
Kompetensi yang diharapkan:
Mampu mendiskripsika konsep lokasi pabrik dan tata letak
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Mampu mendiskripsika konsep lokasi pabrik dan tata letak
pabrik
Mampu mengidentifikasi berbagai faktor yang
dipertimbangkan untuk memilih lokasi pabrik dari area ke
lokasi khusus
Mempu Distinguish diantara pola-pola alternatif dari tata
letak pabrik
Mampu mendiskusikan berbagai faktor-faktor yang
mempengaruhi pemilihan tata letak mula-mula dan
modifikasi selanjutnya
Lokasi Pabrik
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Tata Letak Pabrik
The efficiency of production depends on how well the various
hi
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machines;
production facilities and employees amenities are located in a
plant. Only the properly laid out plant can ensure the smooth
and rapid movement of material, from the raw material stage
to the end product stage. Plant layout encompasses new
layout as well as improvement in the existing layout.
It may be defined as a technique of locating machines It may be defined as a technique of locating machines,
processes and plant services within the factory so as to achieve
the right quantity and quality of output at the lowest possible
cost of manufacturing. It involves a judicious arrangement of
production facilities so that workflow is direct.
DEFINISI
Plant layout refers to the arrangement of physical facilities such as
machinery, equipment, furniture etc. with in the factory building in
such a manner so as to have quickest flow of material at the lowest
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such a manner so as to have quickest flow of material at the lowest
cost and with the least amount of handling in processing the product
from the receipt of material to the shipment of the finished product.
According to Riggs, the overall objective of plant layout is to design
a physical arrangement that most economically meets the required
output quantity and quality.
According to J L Zundi Plant layout ideally involves allocation of According to J. L. Zundi, Plant layout ideally involves allocation of
space and arrangement of equipment in such a manner that overall
operating costs are minimized.

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KEPENTINGAN
Plant layout is an important decision as it represents long-term
commitment. An ideal plant layout should provide the
optimum relationship among output floor area and
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optimum relationship among output, floor area and
manufacturing process. It facilitates the production process,
minimizes material handling, time and cost, and allows
flexibility of operations, easy production flow, makes
economic use of the building, promotes effective utilization of
manpower, and provides for employees convenience, safety,
comfort at work, maximum exposure to natural light and
ventilation. It is also important because it affects the flow of
material and processes, labor efficiency, supervision and p y p
control, use of space and expansion possibilities etc.

ESSENTIALS
Tata letak pabrik yang efisien merupakan sesuatu yang dapat digunakan untuk mencapai
tujuan berikut ini:
a) Proper and efficient utilization of available floor space
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) p p
b) To ensure that work proceeds from one point to another point without any delay
c) Provide enough production capacity.
d) Reduce material handling costs
e) Reduce hazards to personnel
f) Utilise labour efficiently
g) Increase employee morale
h) Reduce accidents
i) Provide for volume and product flexibility ) p y
j) Provide ease of supervision and control
k) Provide for employee safety and health
l) Allow ease of maintenance
m) Allow high machine or equipment utilization
n) Improve productivity
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Tipe Tata Letak
As discussed so far the plant layout facilitates the arrangement of
machines, equipment and other physical facilities in a planned
manner within the factory premises An entrepreneur must possess
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manner within the factory premises. An entrepreneur must possess
an expertise to lay down a proper layout for new or existing plants.
It differs from plant to plant, from location to location and from
industry to industry. But the basic principles governing plant layout
are more or less same.
As far as small business is concerned, it requires a smaller area or
space and can be located in any kind of building as long as the space
is available and it is convenient. Plant layout for Small Scale business
is closely linked with the factory building and built up area.
From the point of view of plant layout we can classify small business From the point of view of plant layout, we can classify small business
or unit intothree categories:
1. Manufacturing units
2. Traders
3. Service Establishments
1. Manufacturing units
In case of manufacturing unit, plant layout may be of four types:
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c s o u c u g u , p you y o ou yp s
(a) Product or line layout
(b) Process or functional layout
(c) Fixed position or location layout
(d) Combined or group layout
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(a) Product or line layout:
Under this, machines and equipments are arranged in one line
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U s, c s qu p s g o
depending upon the sequence of operations required for the
product. The materials move form one workstation to another
sequentially without any backtracking or deviation. Under this,
machines are grouped in one sequence. Therefore materials are fed
into the first machine and finished goods travel automatically from
machine to machine, the output of one machine becoming input of
the next, e.g. in a paper mill, bamboos are fed into the machine at
d d t t th th d one end and paper comes out at the other end.
The raw material moves very fast from one workstation to other
stations with a minimum work in progress storage and material
handling.
The grouping of machines should be done keeping in mind the following
general principles.
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a) All the machine tools or other items of equipments must be placed at
the point demanded by the sequence of operations
b) There should no points where one line crossed another line.
c) Materials may be fed where they are required for assembly but not
necessarily at one point.
d) All the operations including assembly, testing packing must be included
in the line
A line layout for two products is given below.
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Advantages: Product layout provides the following benefits:
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a) Low cost of material handling, due to straight and short route
and absence of backtracking
b) Smooth and uninterrupted operations
c) Continuous flow of work
d) Lesser investment in inventory and work in progress
e) Optimum use of floor space
f) Shorter processing time or quicker output
g) Less congestion of work in the rocess g) Less congestion of work in the process
h) Simple and effective inspection of work and simplified production
control
i) Lower cost of manufacturing per unit
Disadvantages: Product layout suffers from following drawbacks:
a. High initial capital investment in special purpose machine
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g p p p p
b. Heavy overhead charges
c. Breakdown of one machine will hamper the whole production
process
d. Lesser flexibility as specially laid out for particular product.
Suitability: Product layout is useful under following conditions:
1) Mass production of standardized products
2) Simple and repetitive manufacturing process
3) Operation time for different process is more or less equal
4) Reasonably stable demand for the product
5) Continuous supply of materials
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Therefore, the manufacturing units involving continuous
manufacturing process, producing few standardized products
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continuously on the firms own specifications and in anticipation of
sales would prefer product layout e.g. chemicals, sugar, paper,
rubber, refineries, cement, automobiles, food processing and
electronics etc.
(b) Process layout:
In this type of layout machines of a similar type are arranged together at
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one place. E.g. Machines performing drilling operations are arranged in the
drilling department, machines performing casting operations be grouped in
the casting department. Therefore the machines are installed in the plants,
which follow the process layout.
Hence, such layouts typically have drilling department, milling department,
welding department, heating department and painting department etc. The
process or functional layout is followed from historical period. It evolved
from the handicraft method of production. The work has to be allocated to
each department in such a way that no machines are chosen to do as many
different job as possible i.e. the emphasis is on general purpose machine.
The work, which has to be done, is allocated to the machines according to
loading schedules with the object of ensuring that each machine is fully
loaded. Process layout is shown in the following diagram.
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Process layout showing movement of two products
The grouping of machines according to the process has to be done keeping in
mind the following principles
a) The distance between de a tments should be as sho t as ossible fo
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a) The distance between departments should be as short as possible for
avoiding long distance movement of materials
b) The departments should be in sequence of operations
c) The arrangement should be convenient for inspection and supervision
Advantages: Process layout provides the following benefits
a) Lower initial capital investment in machines and equipments. There is high
degree of machine utilization, as a machine is not blocked for a single
product product
b) The overhead costs are relatively low
c) Change in output design and volume can be more easily adapted to the
output of variety of products
d) Breakdown of one machine does not result in complete work stoppage
e) Supervision can be more effective and specialized
f) There is a greater flexibility of scope for expansion.
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Disadvantages: Product layout suffers from following drawbacks
a. Material handling costs are high due to backtracking
b More skilled labour is required resulting in higher cost
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b. More skilled labour is required resulting in higher cost.
c. Time gap or lag in production is higher
d. Work in progress inventory is high needing greater storage space
e. More frequent inspection is needed which results in costly supervision
Suitability: Process layout is adopted when
1. Products are not standardized
2. Quantity produced is small
3. There are frequent changes in design and style of product 3. There are frequent changes in design and style of product
4. Job shop type of work is done
5. Machines are very expensive
Thus, process layout or functional layout is suitable for job order production
involving non-repetitive processes and customer specifications and
nonstandardized products, e.g. tailoring, light and heavy engineering
products, made to order furniture industries, jewelry.
(c) Fixed Position or Location Layout
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In this type of layout, the major product being produced is fixed at one location.
Equipment labour and components are moved to that location. All facilities are
brought and arranged around one work center. This type of layout is not relevant
for small scale entrepreneur. The following figure shows a fixed position layout
regarding shipbuilding.
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Advantages: Fixed position layout provides the following benefits
a) It saves time and cost involved on the movement of work from one
workstation to another.
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b) The layout is flexible as change in job design and operation sequence can
be easily incorporated.
c) It is more economical when several orders in different stages of progress
are being executed simultaneously.
d) Adjustments can be made to meet shortage of materials or absence of
workers by changing the sequence of operations.
Disadvantages: Fixed position layout has the following drawbacks
P d ti i d b i l it l i t t i h a. Production period being very long, capital investment is very heavy
b. Very large space is required for storage of material and equipment near
the product.
c. As several operations are often carried out simultaneously, there is
possibility of confusion and conflicts among different workgroups.
Suitability: The fixed position layout is followed in following conditions
1. Manufacture of bulky and heavy products such as locomotives, ships,
boilers generators wagon building aircraft manufacturing etc
(d) Combined layout
C t i f t i it i ll th l
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Certain manufacturing units may require all three processes namely
intermittent process (job shops), the continuous process (mass production
shops) and the representative process combined process [i.e. miscellaneous
shops].
In most of industries, only a product layout or process layout or fixed
location layout does not exist. Thus, in manufacturing concerns where
several products are produced in repeated numbers with no likelihood of
continuous production, combined layout is followed. Generally, a
combination of the product and process layout or other combination are combination of the product and process layout or other combination are
found, in practice, e.g. for industries involving the fabrication of parts and
assembly, fabrication tends to employ the process layout, while the assembly
areas often employ the product layout. In soap, manufacturing plant, the
machinery manufacturing soap is arranged on the product line principle, but
ancillary services such as heating, the manufacturing of glycerin, the power
house, the water treatment plant etc. are arranged on a functional basis.
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2. Traders
When two outlets carry almost same merchandise, customers usually buy in the one that
is o li g to th Th s sto s tt t d d k t b good l o t i
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is more appealing to them. Thus, customers are attracted and kept by good layout i.e.
good lighting, attractive colours, good ventilation, air conditioning, modern design and
arrangement and even music. All of these things mean customer convenience, customer
appeal and greater business volume.
The customer is always impressed by service, efficiency and quality. Hence, the layout is
essential for handling merchandise, which is arranged as per the space available and the
type and magnitude of goods to be sold keeping in mind the convenience of customers.
There are three kinds of layouts in retail operations today.
1. Self service or modified self service layout
2. Full service layout
3 S i l l t 3. Special layouts
The self-service layouts, cuts down on sales clerks time and allow customers to select
merchandise for themselves. Customers should be led through the store in a way that
will expose them to as much display area as possible, e.g. Grocery Stores or department
stores. In those stores, necessities or convenience goods should be placed at the rear of
the store. The use of color and lighting is very important to direct attention to interior
displays and to make the most of the stores layout.
All operations are not self-service. Certain specialty enterprises
sell to fewer numbers of customers or higher priced product,
e g Apparel office machines sporting goods fashion items
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e.g. Apparel, office machines, sporting goods, fashion items,
hardware, good quality shoes, jewelry, luggage and
accessories, furniture and appliances are all examples of
products that require time and personal attention to be sold.
These full service layouts provide area and equipment
necessary in such cases.
Some layouts depend strictly on the type of special store to be
set u e g TV e ai sho soft ice c eam sto e and d ive in set up, e.g. TV repair shop, soft ice cream store, and drive-in
soft drink stores are all examples of business requiring special
design. Thus, good retail layout should be the one, which
saves rent, time and labour.
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3. Services centers and establishment
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Services establishments such as motels, hotels, restaurants, must give
due attention to client convenience, quality of service, efficiency in
delivering services and pleasing office ambience. In todays
environment, the clients look for ease in approaching different
departments of a service organization and hence the layout should
be designed in a fashion, which allows clients quick and convenient
access to the facilities offered by a service establishment.

FAkTOR-FAKTOR YANG
MEMPENGARUHI TATALETAK
a) Bangunan pabrik:
Sifat dan ukuran bangunan menentukan ketersediaan ruang lantai untuk
tataletak Perancangan pabrik perlu mempertimbangkan kebutuhan AC
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tataletak. Perancangan pabrik perlu mempertimbangkan kebutuhan AC,
pengendalian debu, pengendalian humiditas dll.
b) Sifat produk:
product layout is suitable for uniform products whereas process layout is
more appropriate for custom-made products.
c) Proses produksi:
In assembly line industries, product layout is better. In job order or
intermittent manufacturing on the other hand, process layout is desirable.
d) Tipe permesinan: ) p p
General purpose machines are often arranged as per process layout while
special purpose machines are arranged according to product layout
e) Perbaikan dan perawatan:
machines should be so arranged that adequate space is available between
them for movement of equipment and people required for repairing the machines.
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f) Human needs:
Adequate arrangement should be made for cloakroom, washroom,
lockers drinking water toilets and other employee facilities proper
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lockers, drinking water, toilets and other employee facilities, proper
provision should be made for disposal of effluents, if any.
g) Plant environment:
Heat, light, noise, ventilation and other aspects should be duly
considered, e.g. paint shops and plating section should be located in
another hall so that dangerous fumes can be removed through
proper ventilation etc. Adequate safety arrangement should also be
made.
Thus, the layout should be conducive to health and safety of
employees. It should ensure free and efficient flow of men and
materials. Future expansion and diversification may also be
considered while planning factory layout.
Dinamika Tata Letak Pabrik
Plant layout is a dynamic rather than a static concept meaning thereby if
once done it is not permanent in nature rather improvement or revision in
the existing plant layout must be made by keeping a track with development
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g p y y p g p
of new machines or equipment, improvements in manufacturing process,
changes in materials handling devices etc. But, any revision in layout must
be made only when the savings resulting from revision exceed the costs
involved in such revision.
Revision in plant layout may become necessary on account of the following
reasons:
a) Increase in the output of the existing product
b) Introduction of a new product and diversification
c) Technological advancements in machinery, material, processes, product
design, fuel etc.
d) Deficiencies in the layout unnoticed by the layout engineer in the beginning.

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Penerapan Tata Letak pabrik
Plant layout is applicable to all types of industries or plants. Certain plants
require special arrangements which, when incorporated make the layout
look distinct form the types already discussed above. Applicability of plant
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yp y pp y p
layout in manufacturing and service industries is discussed below.
In case of the manufacturing of detergent powder, a multi-storey building is
specially constructed to house the boiler. Materials are stored and poured
into the boiler at different stages on different floors. Other facilities are also
provided around the boiler at different stations.
Another applicability of this layout is the manufacture of talcum powder.
Here machinery is arranged vertically i.e. from top to bottom. Thus, Here machinery is arranged vertically i.e. from top to bottom. Thus,
material is poured into the first machine at the top and powder comes out
at the bottom of the machinery located on the ground floor.
Yet another applicability of this layout is the newspaper plant, where the
time element is of supreme importance the accomplishment being gapped
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time element is of supreme importance, the accomplishment being gapped
in seconds. Here plant layout must be simple and direct so as to eliminate
distance, delay and confusion. There must be a perfect coordination of all
departments and machinery or equipments, as materials must never fail.
Plant layout is also applicable to five star hotels as well. Here lodging, bar,
restaurant, kitchen, stores, swimming pool, laundry, shaving saloons,
shopping arcades, conference hall, parking areas etc. should all find an
appropriate place in the layout. Here importance must be given to
cleanliness, elegant appearance, convenience and compact looks, which
tt t t attract customers.
Similarly plant layout is applicable to a cinema hall, where emphasis is on
comfort, and convenience of the cinemagoers. The projector, screen, sound
box, fire fighting equipment, ambience etc. should be of utmost importance.
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A plant layout applies besides the grouping of machinery, to an arrangement
for other facilities as well. Such facilities include receiving and dispatching
points, inspection facilities, employee facilities, storage etc.
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p p p y g
Generally, the receiving and the dispatching departments should be at either
end of the plant. The storeroom should be located close to the production,
receiving and dispatching centers in order to minimize handling costs. The
inspection should be right next to other dispatch department as inspections
are done finally, before dispatch.
The maintenance department consisting of lighting, safety devices, fire
protection, collection and disposal of garbage, scrap etc. should be located in protection, collection and disposal of garbage, scrap etc. should be located in
a place which is easily accessible to all the other departments in the plant.
The other employee facilities like toilet facilities, drinking water facilities, first
aid room, cafeteria etc. can be a little away from other departments but
should be within easy reach of the employees. Hence, there are the other
industries or plants to which plant layout is applicable.
CHECK YOUR PROGRESS
1. The aim of a good store layout should be

a. Customer convenience
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a. Customer convenience
b. Stocking as much merchandise as can be placed in the store
c. The elimination of stockroom space
d. All of the above
2. one way to increase and direct customer traffic through the store is to

a. Make merchandise difficult to reach

b. Keep goods that are in heavy demand in convenient locations
c Place items that are used together in different parts of the store c. Place items that are used together in different parts of the store
d. Organize the store so that customers do not have a view of the entire department
3. Which of the following stores would find the self-service type of layout most
convenient?

a. A jewelry store c. A shoe store

b. A supermarket d. A coffee shop
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4. You have come across various key words in this section. Pick up
the words, which do not belong to this section.
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Process layout Product mix Job shops Production capacity
Handling cost Market segment Special layout Employee morale
Demographic analysis
5. True or False:
(a) Product Layout is followed by those manufacturing units, which involve y y g
production of non-standardized products
(b) High Capital investment is required for the product manufactured under
product layout
(c) The fixed position layout is applied to the manufacturing of light and
heavy engineering products
6. Match the following:
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ACTIVITY
Visit a restaurant that you can classify as being in the small sector.
Comment upon how has the layout of facilities added to or
detracted from the ease of movement? Could you suggest some
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detracted from the ease of movement? Could you suggest some
alternative layout?

..

..

SUMMARY
In this lesson you have observed that the entrepreneur has to make
decisions regarding plant location, which refers to the selection of a
particular site for setting up a business or factory But before making
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particular site for setting up a business or factory. But before making
such a choice, he has to go through the detailed locational analysis
considering various factors, which influence his decision. It is a long-
term strategic decision, which cannot be changed once taken. An
optimum location can reduce the cost of production and distribution
to a great extent. Thus great care and appropriate planning is
required to select the most appropriate location.
The efficiency of production depends on how well the various
machines production facilities and amenities are located in a plant machines; production facilities and amenities are located in a plant.
An ideal plant layout should provide the optimum relationship
among the output, floor area and manufacturing process.
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An efficient plant layout is one that aims at achieving various objectives like
efficient utilization of available floor space, minimizes cost, allows flexibility
f ti id f l i i d ti it
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of operation, provides for employees convenience, improves productivity
etc. The entrepreneurs must possess the expertise to lay down a proper
layout for new or existing plants.
It differs from one plant to another. But basic principles to be followed are
more or less same.
From the point of view of plant layout, we can classify small business into
three categories i.e.
(a) manufacturing units ( ) g
(b) traders
(c) service establishments.
Designing of layout is different in all above three categories e.g.
manufacturing unit may follow one of Product, Process, and fixed position or
bi d l t th b T d i ht ith f lf i
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combined layout, as the case may be. Traders might go either for self service
or full service or special layouts whereas service establishments such as
motels, hotels, and restaurants must give due attention to customer
convenience, quality of service, efficiency in delivering the service etc. While
deciding for layout for factory or unit or store, a small entrepreneur has to
consider the factors like the nature of the product, production process, size of
factory building, human needs etc.
Plant layout is applicable to all types of industries or plants. At the end, the
l t h ld b d i t h lth d f t f l It h ld layout should be conducive to health and safety of employees. It should
ensure free and efficient flow of men and materials. Future expansion and
diversification may also be considered while planning factory layout.
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GLOSSARY
The various key words, which arise in this Lesson, are:
Business Environment Implies aggregate of all forces, factors and
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us ss o p s gg g o o c s, c o s
institutions, which are external to and beyond the control of business
organizations and their management
Continuous process - A process, which involves mass production of,
standardized product repetitively.
Diversification A process of entering into a field of business, which
is new in terms of the market or technology or both
Expansion Consists of increasing the sales revenue profits and Expansion Consists of increasing the sales revenue, profits and
market share of existing product line or service
Entrepreneur - A person who is skilled at identifying new products
(or sometimes new method of production), setting up operations for
setting up new products, marketing the product and arranging the
finance for the operations.
GLOSSARY
Handling cost - Cost of carrying material or storage cost.
Intermittent process Is a process in which raw materials are
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p oc ss s p oc ss c s
converted into components or parts for stock. But they are
combined according to customer orders.
Manufacturing General term for the process of producing or
assembling goods by hands or machines for sale to others.
Overhead cost Operating costs of a business enterprise, which
cannot be directly traced to a particular unit of product
Production capacity Ability to produce in terms of units Production capacity- Ability to produce in terms of units
Trader A person who is engaged in buying and selling of goods.
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SELF ASSESSMENT QUESTIONS
1. Describe the factors that should be taken into account in deciding the location of
plant?
2. What is the importance of location in business?
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p
3. The governing principle is that a plant should be so located as to permit the
production of the product at the lowest cost per unit. Comment.
4. What do you mean by locational analysis?
5. Explain the meaning and significance of plant location .How will you decide the
location of a mini steel plant in India?
6. Define the plant layout.
7. What are the various factors influencing the layout of grocery store?
8. What are the principles for planning the layout of a new factory?
9. Explain process layout? State its advantages and disadvantages in brief p p y g g
10. Distinguish between product layout and process layout?
11. Explain the suitability of fixed position layout
12. Write about any two types of plant layout
13. What is plant layout? Discuss the objectives and advantages of a good layout
FURTHER READINGS AND
SOURCES
Charantinath M Poornima, Entrepreneurship Development Small Business Enterprises: Pearson
Education First Impression, 2006
Florence. P. Sargent, Investment, Location and Size of plant, London: Cambridge University Press,
1984
44
1984
Government of India (Office of the Economic Adviser), Location of Industries in India, New Delhi,
1963
Lundy, James. L. Effective Industrial Management, New Delhi: Eurasia Publishing House, New
Edition, 1984
Sreekantaradhya, B.S., Regional Dispersal of Industries, New Delhi; Deep and Deep, 1985
Weber, Alfred, Theory of Location of Industries, Chicago: The University of Chicago Press, 1929
Asian Productivity Organisation, Production Engineering, Manila: APO, 1981
Buffa Elwood S., Operations Management, New Delhi: Wiley Eastern, 1986
Kumar Anil, S.C. Purnima, Abrahim Mini K, K Jayashree, Entrepreneurship development: New p p p
Age International Private Limited Publisher, 2003
Read Ruddel R., Plant Layout Factors, Principles and Techniques, Illinois: Richard D. Irwin, 1978
Gupta C.B. and Khanka S.S., Entrepreneurship and small business management: Sultan Chand and
Sons 2003
Shubin John A. and H. Madeheim, Plant Layout, New Delhi: Prentice Hall of India, 1986
Gupta and Srinivasan, Entrepreneurial Development: Sultan Chand and Sons 1995
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Brandt, Steven C.,The 10 Commandments for Building a Growth Company: Third
Edition, Macmillan Business Books, Delhi 1977
Bhide, Amar V.,The Origin and Evolution of New Business: Oxford University Press,
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, , g y ,
New York, 2000
Desai, Vasant, Small Scale Enterprises Vols. 1-12, Mumbai: Himalaya Publishing House,
Latest Edition
Dollinger, Marc J., Entrepreneurship: Strategies and Resources, Illinois, Irwin, 1955
Taneja, Staish and Gupta SL, Entrepreneurship Development and New Venture
Creation: Galgotia Publishing Co 2001
Holt, David H., Entrepreneurship: New Venture Creation, Prentice-Hall of India, New
Delhi, Latest Edition Panda, Shiba Charan, Entrepreneurship Development, New
Delhi: Anmol Publications, Latest Edition
Patel VG The Seven Business Crises and How to Beat Them Tata McGraw New Patel, V.G. The Seven Business Crises and How to Beat Them: Tata-McGraw, New
Delhi, 1995
Verma, J.C., and Gurpal Singh, Small Business and Industry A handbook for
Entrepreneurs, New Delhi, Sage, 2002
Ghosh, Bishwanath entrepreneurship development in India: National publishing
house, Jaipur and New Delhi 2000
46
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GE GAP Guidelines
A Publication of GE Global Asset Protection Services_GAP.2.5.2 September 3, 2001
OIL AND CHEMICAL PLANT LAYOUT AND
SPACING
47
SPACING
INTRODUCTION
Loss experience clearly shows that fires or explosions in congested areas of oil and
chemical plants can result in extensive losses. Wherever explosion or fire hazards exist,
48
p p ,
proper plant layout and adequate spacing between hazards are essential to loss
prevention and control. Layout relates to the relative position of equipment or units
within a given site. Spacing pertains to minimum distances between units or
equipment.
GE Global Asset Protection Services (GE GAP Services) layout and spacing
recommendations are for property loss prevention purposes only and are intended
for existing and new oil and chemical facilities. These guidelines are intended to limit
explosion overpressure and fire exposure damage. They do not address shrapnel
damage. If these guidelines cannot be followed, then additional loss control measures,
such as fire proofing, waterspray or blast hardening will be necessary.
GE GAP Services guidelines only address spacing and layout within a plant and are GE GAP Services guidelines only address spacing and layout within a plant and are
mostly applicable to open structures. An open air design favors vapor dissipation,
provides adequate ventilation, reduces the size of the electrically classified area, and
increases firefighting accessibility. Additional information can be found in several
publications.
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POSITION
Management Programs
Management program administrators should report to top management
through the minimum number of steps They should also institute loss
49
through the minimum number of steps. They should also institute loss
prevention inspection and audit programs to communicate program
effectiveness to top management. This management feedback is a key feature
of GAP.1.0.1 (OVERVIEW). In developing a program, pay particular
attention to the following important areas:
Hazard Identification and Evaluation Program
Determine the plant layout and spacing necessary to limit loss size based on
worst case scenarios for vapor cloud, vessel and building explosions, and for
fires. Calculate overpressure circles. See GAP.8.0.1.1 for hazard analysis and
evaluation methods applicable to various explosion or fire scenarios. This
l i b l t d i di ti ith GE GAP S i l analysis can be completed in coordination with GE GAP Services loss
prevention personnel.
Management of Change
Conduct a Hazard Identification and Evaluation program for all new
processes or for any modification to an existing process prior to completing
final site selection and equipment layout. Determine the need for changes to
spacing or layout.
Duplication of Facilities
For large-scale chemical and petrochemical plants, provide multiple process trains. In large
scale plants, duplicate, with installed spares, equipment that is highly susceptible to loss or
important for continued operations. For smaller scale or batch type plants, install processes
important to production in the form of multiple small-scale units rather than a single large
unit hysically separate duplicated units process trains or equipment with adequate
50
General
Consider the following when determining the
layout and the separation required:
High hazard operations (see Appendix A)
Grouped operations
Critical operations
Number of personnel at risk
Concentration of property and business
Market share concerns
Fire and explosion exposures
Corrosive or incompatible materials exposures
Vapor cloud explosions
Sources of ignition
Maintenance and emergency accessibility
Drainage and grade sloping
Prevailing wind conditions
unit. hysically separate duplicated units, process trains or equipment with adequate
spacing in accordance with this section or compartmentalize with blast resistant
construction
p p y
interruption values
Equipment replacement and installation time
Interdependency of facilities
Critical customer or supplier relationships
Prevailing wind conditions
Natural hazards and climate
Future expansions
External exposures
Review the various hazards and loss potentials to establish the degree of
separation required between units and equipment. Consult Tables 1, 2 and 3 in this
guide for minimum spacing guidelines based on fire and vessel explosion hazards.
Increase spacing where appropriate.
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TABLE 1. Inter-Unit Spacing Recommendations For Oil And Chemical
Plants.
1 ft = 0.305 m
/ = no spacing requirements
51
* = spacing given in Table 3
Examples:
50 ft separation between two cooling
towers
300 ft separation between service
building and flare
TABLE 2. Intra-Unit Spacing Recommendations For Oil And Chemical
1 ft = 0.305 m
/ = no spacing
52
/ = no spacing
requirements
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TABLE 3. Storage Tank Spacing Recommendations For Oil And Chemical
Plants.
D = Largest Tank Diameter
1 barrel = 42 gallons = 159 L
53
C = (F-32) x 0.555
1 ft = 0.305 m
*For Class II, III products, 5 ft spacing is
acceptable.
**Or Class II or III operating at
temperatures > 200F.
Where large amounts of flammable vapors could be released
and a vapor cloud explosion could occur, perform a more
detailed hazard analysis and evaluation per GAP8 0 1 1
54
detailed hazard analysis and evaluation per GAP.8.0.1.1.
Calculate the vapor cloud explosion overpressure circles.
Where applicable, base the minimum spacing required
between units upon the following criteria:
Do not locate critical equipment of adjacent units within the 3 psi
(0.21 bar) overpressure circle.
Design equipment or structures of adjacent units within the 1 psi
(0.07 bar) overpressure circle to withstand the calculated vapor
cloud overpressure. p
If the minimum spacing requirements based on a vapor cloud
explosion differ from the minimum spacing required by the
spacing tables, use the greater of the two.
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Overall Plant Layout
Initially, base site selection on exposure from uncontrollable factors,
such as floods, earthquakes, tidal waves, subsidence, hurricanes, and
adjacent oil and chemical plants
55
adjacent oil and chemical plants.
Once a site has been selected, arrange layout and spacing to reduce
the effect of some of the following controllable and uncontrollable
factors that contribute to losses:
Uncontrollable factors include site slope, climate, exposure to natural
hazards, wind direction and force. However, locating ignition sources
upwind of potential vapor leaks or locating the tank farm downhill of
essential units may reduce the loss potential from an explosion or fire.
Figure 1 illustrates a good layout based on the prevailing wind.
Controllable factors include process design parameters maintenance Controllable factors include process design parameters, maintenance,
spare parts supply, control logic and automation, fire protection design,
spare production capacity, flammable liquid holdups, spill control and the
type of process. Use proper drainage and separation to control spills and
fire spread. Refer to GAP.2.5.3 and GAP.8.0.1.2.
Figure 1. Good Layout Example.
Reprinted by permission of NOVACOR Chemical Ltd.
56
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29
Use a hazard assessment of each plant operation to help establish the
layout or orientation of blocks or unit battery limits within the plant.
57
Review the possible loss events and the consequences for each
proposal. Select a layout which will minimize the overall property
damage and related business interruption should an incident occur.
Subdivide the overall site into general areas dedicated to process
units, utilities, services and offices. Since each area or unit block
generally has a rectangular shape, keep the maximum unit size to
300 ft 600 ft (92 m 183 m) for firefighting purposes.
Provide access roadways between blocks to allow each section of the plant to be
accessible from at least two directions.
Avoid dead end roads.
58
Size road widths and clearances to handle large moving equipment and emergency vehicles or
to a minimum of 28 ft (8.5 m), whichever is greater.
Maintain sufficient overhead and lateral clearances for trucks and cranes to avoid hitting
piping racks, pipe ways, tanks or hydrants.
Do not expose roads to fire from drainage ditches and pipeways.
Slightly elevate roads in areas subject to local flooding.
Locate hydrants and monitors along roads to allow easy hook-up of firefighting trucks.
Provide at least two entrances to the plant for emergency vehicles to prevent the possibility of
vehicles being blocked during an incident, e.g., open bridge, railway.
Plan and implement a Roadway Closure permit system authorized and controlled by site p y p y y
Emergency Response personnel as part of the site impairment handling system.
Provide spacing between units based upon the greater of either Table 1 or a hazard
assessment. The space between battery limits of adjoining units should be kept clear
and open. Do not consider the clear area between units as a future area for process
expansion
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Process Units
Evaluate the process hazards and, depending on the results of
such review, classify them in high, intermediate and moderate
hazard groups as shown in GAP2 5 2 A Consult the table in
59
hazard groups as shown in GAP.2.5.2.A. Consult the table in
this section to determine the spacing required between the
various blocks based upon the relative hazard of each process.
Separate hazardous units from other hazardous units to avoid
fire spread. Separate or buffer high hazard units by using
moderate or even lower hazard units as a way to reduce such
exposure, e.g., separate a DNT plant from a TDA plant by
placing a sulfuric or nitric acid unit between them.
Locate equi ment o st uctu es common to multi le ocess Locate equipment or structures common to multiple process
units, such as large compressors and turbines, central control
rooms and fired heaters, so as to prevent a single event from
impairing the overall operation and causing extensive business
interruption.
Lay out the equipment within a unit in one of two general
ways.
U d l t h i il i t i d t th
60
Use grouped layout, where similar equipment is grouped together
to ease operation, maintenance and control.
Use flow line layout, where equipment is arranged in a sequence
similar to the process flow diagram.
Wherever it does not conflict with loss control, consider
accessibility for maintenance and operations in determining
spacing and layout. Locate equipment needing frequent
overhaul, maintenance or cleaning at unit boundaries. Locate
large vessels or equipment close to unit boundaries to allow large vessels or equipment close to unit boundaries to allow
easy access of cranes.
Use Table 2 for minimum spacing guidelines for spacing within
process units. The recommended separations are the clear,
horizontal distances between adjacent edges of equipment.
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Hazard Classification
The following hazard classifications are for equipment and processes:
Reactors:
61
Classify process reactors as moderate, intermediate or high hazard. The
relative hazard classification is detailed in GAP.2.5.2.A.
High hazard pumps:
Handle flammable and combustible liquids, operate at temperatures
above 500F (260C) or above the product autoignition temperature.
Handle flammable and combustible liquids and operate at pressures
above 500 psi (34.5 bar).
Handle liquefied flammable gases.
Intermediate hazard pumps: Intermediate hazard pumps:
All other pumps handling flammable or combustible liquids. Canned and
magnetic pumps have a lower fire hazard, and therefore, there are no
specific spacing requirements.
Intra-Unit Spacing
For proper intra-unit layout, include the following principles:
Do not group pumps and compressors handling flammable products in one single
area Do not locate them under piperacks air cooled heat exchangers and vessels
62
area. Do not locate them under piperacks, air cooled heat exchangers and vessels.
Orient pump and driver axes perpendicular to piperacks or other equipment to
minimize fire exposure in case of a pump seal failure. Separate high pressure charge
pumps from any other major process equipment and other pumps by at least 25 ft
(7.5 m).
Locate compressors at least 100 ft (30 m) downwind from fired heaters and at least
30 ft (7.5 m) from any other exposing equipment. To avoid unnecessary exposure,
do not locate lube oil tanks and pumps directly under any compressor.
D h h d f f h l l h f Detach heaters and furnaces from the unit or at least locate them at one corner of
the unit. Locate continuous ignition sources upwind of the process units.
If increased spacing for very high hazard equipment susceptible to explosions, such
as reactors, is not possible, separate them from other areas by blast resistant walls.
Keep flammable products storage to a minimum within the process unit boundaries.
Install tanks, accumulators or similar vessels with flammable liquid holdups at grade,
if possible.
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The preferred layout of a process unit is a piperack located in the
center of the unit with large vessels and reactors located outwards of
63
the central piperack. Place pumps at the outer limits of the process
area. Limit the stacking of equipment in process structures to
equipment with no fire potential. Slope the ground surface so that
liquids drain away from the center of the unit. Do not put drainage
trenches under piperacks. Put cable trays in the top tier of the
piperacks.
Utilities
Locate central services, such as cooling towers, boilers, power
stations and electrical substations, away from hazardous areas so
64
they will not be affected by a fire or explosion within the plant nor
be a source of ignition for any potential flammable liquid or gas
release. Maintain adequate separation between different utility
services because utility losses could then lead to unsafe conditions in
other plant units, possibly creating fires or explosions. Increase the
reliability of the utilities by keeping adequate spacing between
boilers or generators.
P l i i d ith NFPA 496
3
t Properly pressurize in accordance with NFPA 496
3
or separate
electrical substations and motor control centers. Locate substations
away from hazardous areas to increase the reliability of the power
supplies should a loss occur. Bury electrical distribution cables to limit
their exposure to explosions, fires, storms and vehicles, and to ease
firefighting accessibility.
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Control Rooms
Locate and construct control rooms, motor control centers, and other
essential facilities to allow operators to safely shut down units under
65
essential facilities to allow operators to safely shut down units under
emergency conditions. Locate the control building where it will not
be exposed by fires or explosions. If separation is not feasible, design
the building to withstand potential explosion overpressure. Where
control rooms are exposed to fires or blast overpressures, locate the
emergency loss control coordination center in a safe area.
Consider unmanned satellite computer rooms, terminal rooms and
i/o rack rooms equivalent to motor control centers for the purpose of
this guideline.
Services
Keep warehouses, laboratories, shops, fire brigade stations and offices
away from process areas. Welding equipment, cars and trucks as well
as large numbers of people can become uncontrollable ignition
sources.
Loading and Unloading
Space loading racks, piers and wharves well away from other areas
66
Sp c o g cks, p s s y o o s
due to large numbers of trucks, rail cars, barges or ships carrying
large amounts of flammable or combustible liquids. Reduce plant
traffic to ease emergency vehicle movement and limit accident
hazards by locating loading and off-loading operations at the plant
perimeter close to the entry gate.
Locate flares according to Table 1 or to API 521, 4 whichever is
greater.
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Tank Farms
Consult Table 3 for general recommendations for spacing
aboveground storage tanks in the oil and chemical industry. The
spacing is given as a distance from tank shell to tank shell and is a
67
spacing is given as a distance from tank shell to tank shell and is a
function of the largest tank diameter. If there are adverse conditions,
such as poor fire protection water supply, difficult firefighting, poor
accessibility, poor diking or poor drainage, increase the spacing by at
least 50%. Treat crude oil as a flammable liquid.
See Table 1 for minimum spacing between tank farms and other
units.
Do not group or dike different types of tanks and contents together.
Locate storage tanks at a lower elevation than other occupancies to g p
prevent liquids or gases from flowing toward equipment or buildings
and exposing them. Locate tanks downwind of other areas.
Arrange atmospheric storage tanks and pressure vessels in rows not
more than two deep and adjacent to a road or accessway for
adequate firefighting accessibility.
Tank Farms
Since piping involved in ground fires usually fails within 10 or 15 min
of initial exposure, locate an absolute minimum amount of piping,
valves and flanges within dikes Install pumps valve manifolds and
68
valves and flanges within dikes. Install pumps, valve manifolds, and
transfer piping outside dikes or impounding areas.
Provide tanks with proper dikes or drainage to a remote impounding
facility.
Where tanks over 500,000 bbl (80,000 m3 ) are present, increase
minimum distances to 1000 ft (305 m) spacing between them.
Space tanks so the thermal radiation intensity from an exposing fire
is too low to ignite the contents of the adjacent tanks. Tolerances of
tanks to thermal radiation can be increased by: y
Painting vessels a reflective color (generally white or silver).
Providing a fixed water spray or tank shell cooling system. Refer to
GAP.12.2.1.2 for additional guidance.
Insulating or fireproofing the tank shell. Guidance can be found in
GAP.2.5.1.
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Atmospheric Storage Tanks
Classify internal floating roof tanks as floating roof tanks when pontoon
internal floaters are provided When plastic aluminum or a steel pan
69
internal floaters are provided. When plastic, aluminum or a steel pan
are used in the construction of the internal floater, classify the tank as
a cone roof tank for spacing purposes.
Floating roof tanks: Store crude oil and flammable liquids (Class I) in
floating roof or internal floating roof tanks. Arrange floating roof
tanks in excess of 300,000 barrels (47,700 m) in a single row. If
multiple rows are necessary, space tanks farther than one diameter
apart apart.
Atmospheric Storage Tanks
Cone roof tanks: Combustible liquids (Class II and III) may be stored in
cone roof tanks with the following limitations or exceptions:
Cone roof tanks in excess of 300 000 barrels (47 700 m3 ) present an
70
Cone roof tanks in excess of 300,000 barrels (47,700 m3 ) present an
unacceptable amount of potentially explosive vapor space, even if storing
heavy oils. In such cases, use only floating roof tanks.
Do not store liquids with boil over characteristics in cone roof tanks larger
than 150 ft (45.8 m) in diameter, unless an inerting system is provided.
Avoid storage of flammable liquids (Class I) in cone roof tanks. If cone roof
tanks are used for flammable liquids storage, restrict the tank size to less
than 150,000 barrels (23,850 m), provide an inert gas blanket, and increase
the spacing.
Space cone roof tanks storing Class IIIB liquids, operating at ambient p g q , p g
temperatures, as floating and cone roof tanks smaller than 3000 barrels
(480 m3).
Increase separation of cone roof tanks in excess of 10,000 barrels (1590 m )
containing combustible liquids stored at a temperature higher than 200F
(93C).
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Pressurized and Refrigerated
Storage Tanks
Spheres and spheroids :
Provide spacing between groups of vessels of at least 100 ft (30 m) or
h l k di Li i h k i f i
71
the largest tank diameter. Limit each tank group to a maximum of six
vessels. See Table 3 for the minimum spacing between vessels.
Drums and bullets:
Limit horizontal pressurized storage vessels to not more than six vessels
or 300,000 gal (1136 m3) combined capacity in any one group. Provide
at least 100 ft (30 m) or the largest tank diameter between groups. Align
vessels so that their ends are not pointed toward process areas or other
storage areas, as these vessels tend to rocket if they fail during a fire.
Avoid multiple row configurations. Do not locate pressurized storage
vessels above each other See also GAP8 2 0 1 vessels above each other. See also GAP.8.2.0.1.
Refrigerated dome roof tanks:
Provide spacing between groups of vessels of at least 100 ft (30 m) or
the largest tank diameter. Limit each tank group to a maximum of six
vessels. Provide greater spacing if exposed combustible insulation is used
on the tanks.
DISCUSSION
A good layout and sufficient spacing between hazards, equipment and
units will have the following benefits:
L l i d O t d b l i d
72
Less explosion damage. Overpressures created by an explosion decrease
rapidly as the distance from the center of the explosion increases. The
mathematical relationship between overpressures and their distances from
the explosion center is given in GAP.8.0.1.1.
Less fire exposure. Radiation intensity from a fire decreases as the square of
the separation distance.
Higher dilution of gas clouds or plumes. Gas concentration decreases as the
distance from the emission source increases.
Easier access to equipment for maintenance, inspection and firefighting
purposes purposes.
Easier spill and spill fire control in open areas.
Lower concentration of values, resulting in a lower property damage loss
estimates should a given incident occur. GE GAP Services typically
establishes a probable maximum loss (PML) and maximum foreseeable loss
(MFL) estimates based upon a vapor cloud explosion where such a hazard
exists. An adequate spread of values and good spacing between explosion
hazard areas will lower the PML and MFL.
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DISCUSSION
Extensive spacing might increase the initial investment required to build a
given plant. More land will be required. More piping, cabling, roads and
73
larger drainage systems will be required. Additional or larger pumps or
compressors might be required as friction loss increases with the piping length
and, therefore, operating costs increase. However, the loss control benefits
outweigh the additional costs due to less disruption to production when the
incident occurs.
Proper layout and separation distances should be designed into a plant
during the very early planning stages of the project. This will require
preliminary identification of hazards inherent to the operations and of the
74
p y p
natural hazards. A good layout may not automatically increase the
construction cost because proper separation between hazards can decrease
the exposure protection required. For example, a control room unexposed
by a process unit would have no need to be explosion resistant. Optimum
layout will achieve a balance among loss prevention, construction,
maintenance and operation requirements.
Computer-aided design (CAD) generates three dimensional layouts which
have proven effective for visualizing the proposed spatial arrangement of a
unit or plant. High equipment concentration and plant congestion are
spotted easily by these computer generated techniques. The use of CAD p y y p g q
allows operators, maintenance and loss prevention personnel to easily
comment and make appropriate recommendations. Scale models offer
similar benefits.
Vapor cloud calculations could indicate that an even greater separation
between some units is needed because of higher than normal explosion
damage potential and business interruption.
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38
Other hazard assessment methods can provide good loss potential
evaluations and are described in various Center for Chemical Process Safety
publications, in the DOW Fire & Explosion Index, or in API RP 752.
75
p p
Table 1 provides minimum inter-unit spacing which should be increased
where a hazard analysis shows that larger separation distances are required.
Unfavorable conditions, such as inadequate sloping, poor drainage and
critical operations, can increase the exposure between units, thus requiring
higher separation distances. All distances between units are measured from
battery limits. Battery limits as defined by GE GAP Services are imaginary
lines surrounding a unit. This line is typically box shaped and encloses
equipment required for the operation of the unit. Cooling towers,
maintenance buildings or other structures not integral to the unit are
considered to be independent and should not be included in the battery p y
limits. This line crosses utility, service, raw material and finished product
piping.
The processing units are generally the most hazardous operations in a plant.
For operational purposes, the process units are generally grouped together
and arranged in accordance with the general process flow.
Often, fire protection spacing requirements will exceed maintenance
accessibility requirements. The relative location of equipment depends on its
b bl l f fl bl t i l it fl bl li id h ld d it
76
probable release of flammable materials, its flammable liquid holdup, and its
potential to be a source of ignition. A domino effect loss is possible within
process units.
NFPA 30 defines flammable liquids as Class I materials, and combustible
liquids as Class II and III materials. The classification depends on the flash
point of the product. In some very hot climates, Class II liquids could behave
as flammable liquids because the storage temperature could exceed the
flashpoint temperature. Unstable liquids or gases and monomer storage
i i l ti d t dd d i T bl 3 require special precautions and are not addressed in Table 3.
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GE GAP Guidelines Referenced
GAP.2.5.1
Fireproofing For Oil And Chemical Properties
77
Fireproofing For Oil And Chemical Properties
.
GAP.2.5.2.A
Hazard Classification Of Process Operations For Spacing Requirements
.
GAP.2.5.3
Drainage For Outdoor Oil And Chemical Plants
GAP.8.0.1.1
Oil And Chemical Properties Loss Potential Estimation Guide
.
GAP.8.0.1.2
Liquid Holdup Estimation
GAP.12.2.1.2
Water And Spray Deluge Protection For Oil And Chemical Plants
.
REFERENCES
1. Hazard Survey of the Chemical and Allied Industries, Technical Survey No. 3 , 1968, American Insurance Association, New York, NY.
An Engineers Guide To Process-Plant Layout , F.F. House, July 28, 1969, Chemical Engineering, McGraw Hill, New York, NY.
Process Plant Layout , by J.C. Mecklenburgh, John Wiley & Sons, New York, NY.
Loss Prevention In The Process Industries F P Lees Volumes 1 & 2 Butterworths Boston MA
78
Loss Prevention In The Process Industries , F. P. Lees, Volumes 1 & 2, Butterworths, Boston, MA.
Loss Prevention Fundamentals For The Process Industry , O. M. Slye Jr., Loss Prevention Symposium, March 1988, American Institute of Chemical
Engineers, New York, NY.
NFPA 30-2000, Flammable And Combustible Liquids Code , National Fire Protection Association, Quincy, MA.
NFPA 58-2001, Liquefied Natural Gas , National Fire Protection Association, Quincy, MA.
2. OVERVIEW
, GE Global Asset Protection Services.
3. NFPA 496-1998,
Purged And Pressurized Enclosures For Electrical Equipment In Hazardous (Classified) Locations, National Fire Protection Association, Quincy, MA.
4. API RP 521-1982:
Guide For Pressure-Relieving And Depressurizing Systems , American Petroleum Institute, Washington, DC.
5. Center for Chemical Process Safety, American Institute of Chemical Engineers, New York, NY.
6 Fire & Explosion Index Hazard Classification Guide 6. Fire & Explosion Index, Hazard Classification Guide
, Dow Chemical Company, Sixth edition, available from the American Institute of Chemical Engineers, New York, NY.
7. API RP 752-1995:
Management of Hazards Associated with Location of Process Plant Buildings, American Petroleum Institute, Washington, DC.
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Plant Layout and Modelling
79
Peter Watermeyer, Handbook for Process Plant Project Engineers, Professional
Engineering Publishing Limited London, page 105~(2002)
80
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81