FACTORS INFLUENCING PLANT LOCATION/FACILITY LOCATION
Facility location is the process of determining a geographic site for a firm’s operations. Managers of both service and manufacturing organizations must weigh many factors when assessing the desirability of a particular site, including proximity to customers and suppliers, labour costs, and transportation costs. Location conditions are complex and each comprises a different Characteristic of a tangible (i.e. Freight rates, production costs) and non-tangible (i.e. reliability, Frequency security, quality) nature. Location conditions are hard to measure. Tangible cost based factors such as wages and products costs can be quantified precisely into what makes locations better to compare. On the other hand non-tangible features, which refer to such characteristics as reliability, availability and security, can only be measured along an ordinal or even nominal scale. Other non-tangible features like the percentage of employees that are unionized can be measured as well. To sum this up non-tangible features are very important for business location decisions. It is appropriate to divide the factors, which influence the plant location or facility location on the basis of the nature of the organisation as 1. General locational factors, which include controllable and uncontrollable factors for all type of organisations. 2. Specific locational factors specifically required for manufacturing and service organisations. Location factors can be further divided into two categories: Primary factors are those derived from competitive priorities (cost, quality, time, and flexibility) and have a particularly strong impact on sales or costs. Secondary factors also are important, but management may downplay or even ignore some of them if other factors are more important.
GENERAL LOCATIONAL FACTORS
Following are the general factors required for location of plant in case of all types of organisations. CONTROLLABLE FACTORS 1. Proximity to markets: Every company is expected to serve its customers by providing goods and services at the time needed and at reasonable price organizations may choose to locate facilities close to the market or away from the market depending upon the product. When the buyers for the product are concentrated, it is advisable to locate the facilities close to the market. Locating nearer to the market is preferred if • The products are delicate and susceptible to spoilage. • After sales services are promptly required very often. • Transportation cost is high and increase the cost significantly. • Shelf life of the product is low. Nearness to the market ensures a consistent supply of goods to customers and reduces the cost of transportation. 2. Supply of raw material: It is essential for the organization to get raw material in right qualities and time in order to have an uninterrupted production. This factor becomes very important if the materials are perishable and cost of transportation is very high. General guidelines suggested by Yaseen regarding effects of raw materials on plant location are:
• When a single raw material is used without loss of weight, locate the plant at the raw material source, at the market or at any point in between. • When weight loosing raw material is demanded, locate the plant at the raw material source. • When raw material is universally available, locate close to the market area. • If the raw materials are processed from variety of locations, the plant may be situated so as to minimize total transportation costs. Nearness to raw material is important in case of industries such as sugar, cement, jute and cotton textiles. 3. Transportation facilities: Speedy transport facilities ensure timely supply of raw materials to the company and finished goods to the customers. The transport facility is a prerequisite for the location of the plant. There are five basic modes of physical transportation, air, road, rail, water and pipeline. Goods that are mainly intended for exports demand a location near to the port or large airport. The choice of transport method and hence the location will depend on relative costs, convenience, and suitability. Thus transportation cost to value added is one of the criteria for plant location. 4. Infrastructure availability: The basic infrastructure facilities like power, water and waste disposal, etc., become the prominent factors in deciding the location. Certain types of industries are power hungry e.g., aluminum and steel and they should be located close to the power station or location where uninterrupted power supply is assured throughout the year. The non-availability of power may become a survival problem for such industries. Process industries like paper, chemical, cement, etc., require continuous. Supply of water in large amount and good quality, and mineral content of water becomes an important factor. A waste disposal facility for process industries is an important factor, which influences the plant location. 5. Labour and wages: The problem of securing adequate number of labour and with skills specific is a factor to be considered both at territorial as well as at community level during plant location. Importing labour is usually costly and involve administrative problem. The history of labour relations in a prospective community is to be studied. Prospective community is to be studied. Productivity of labour is also an important factor to be considered. Prevailing wage pattern, cost of living and industrial relation and bargaining power of the unions’ forms in important considerations. 6. External economies of scale: External economies of scale can be described as urbanization and locational economies of scale. It refers to advantages of a company by setting up operations in a large city while the second one refers to the “settling down” among other companies of related Industries. In the case of urbanization economies, firms derive from locating in larger cities rather than in smaller ones in a search of having access to a large pool of labour, transport facilities, and as well to increase their markets for selling their products and have access to a much wider range of business services. Location economies of scale in the manufacturing sector have evolved over time and have mainly increased competition due to production facilities and lower production costs as a result of lower transportation and logistical costs. This led to manufacturing districts where many companies of related industries are located more or less in the same
are the factors that demand attention. such as roads. So. In order to have a balanced regional growth of industries. To fulfill these criteria corporations have to be located in the same area increasing their market and service for large corporations. Community and labour attitudes: Community attitude towards their work and towards the prospective industries can make or mar the industry. Community infrastructure and amenity: All manufacturing activities require access to a community infrastructure. temperature). Capital becomes a main factor when it comes to venture capital. Some industries require specific climatic conditions e. Fixed capital costs as building and construction costs vary from region to region. These firms particularly need access to financial capital and also skilled educated employees. railways. Some of these incentives may tempt to locate the plant to avail these facilities offered. Climates greatly influence human efficiency and behaviour. Financial capital is highly mobile and does not very much influence decisions. it is important to distinguish the physiology of fixed capital in buildings and equipment from financial capital. Facility location in specific location is not desirable even though all factors are favouring because of labour attitude towards management. port facilities. Community attitudes towards supporting trade union activities are important criteria. which brings very often the strikes and lockouts. the source of supply of component parts will be the one of the factors that influences the location. As large corporations have realized that inventories and warehouses have become a major cost factor. soft loan from financial institutions. The various services like communications. The incentive package may be in the form of exemption from a safes tax and excise duties for a specific period. For example.area. Government policy: The policies of the state governments and local bodies concerning labour laws. 12. most notably economic overhead capital. building codes. Supporting industries and services: Now a day the manufacturing organization will not make all the components and parts by itself and it subcontracts the work to vendors. 9. safety.g. large Multinational Corporations such as Coca. But on the other hand buildings can also be rented and existing plants can be expanded. Just in time ensures to get spare parts from suppliers within just a few hours after ordering. 11.Cola operate in many different countries and can raise capital where interest rates are lowest and conditions are most suitable. banking services professional consultancy services and other civil amenities services will play a vital role in selection of a location.. This high efficient production system was one main factor in the Japanese car industry for being so successful. Climatic conditions: The geology of the area needs to be considered together with climatic conditions (humidity. 10. they have tried reducing inventory costs by launching “Just in Time” production system (the so called Kanban System). etc. fast growing (or not) high tech firms are concerned which usually have not many fixed assets. textile mill will require humidity. In that case young.. UNCONTROLLABLE FACTORS 8. subsidy in electricity charges and investment subsidy. both central and state governments in our country offer the package of incentives to entrepreneurs in particular locations. power lines and service facilities and social overhead
. 7. Capital: By looking at capital as a location condition.
and real estate costs: Other important factors that may emerge include utility costs (telephone. attitudes toward work.
. SPECIFIC LOCATIONAL FACTORS FOR MANUFACTURING ORGANISATION
Factors dominating location decisions for new manufacturing plants can be broadly classified in six groups. relocation costs. 2. Proximity to markets:After determining where the demand for goods and services is greatest. cultural events.4. These require frequent coordination and communication.capital like schools. 2.
3. Quality of life 4. and union strength. Supply of raw material: It is necessary to consider the adequate supply of raw materials and the nature of raw materials. but it can make the difference in location decisions. Utilities. 4. Utilities. local and state taxes. which can become more difficult as distance increases. 5. and water). and consumer electronics. and an attractive lifestyle contribute to quality of life. These factors are also needed to be considered by location decisions as infrastructure is enormously expensive to build and for most manufacturing activities the existing stock of infrastructure provides physical restrictions on location possibilities. 1. management must select a location for the facility that will supply that demand. recreational facilities. This factor is relatively unimportant on its own. nearness to source of raw materials is not as important as nearness to the market. manufacturers of products such as plastic pipe and heavy metals all emphasize proximity to their markets. financing incentives offered by local or state governments. energy. In those industries where the raw materials are obtained from different source. Labour climate includes wage rates. They are listed in the order of their importance as follows. universities and hospitals. taxes. Nearness to market: Nearness to market is important from the point of view of control over the market. training requirements. 3. taxes. and land costs. For example. furniture. Locating near markets is particularly important when the final goods are bulky or heavy and outbound transportation rates are high. worker productivity. Favorable labour climate: A favorable labour climate may be the most important factor in location decisions for labour-intensive firms in industries such as textiles. Proximity to suppliers and resources: In many companies. Proximity to markets 3. Quality of life:Good schools. Favourable labour climate 2. Proximity to suppliers and resources 5.
CLASSIFICATION AS PRIMARY AND SECONDARY FACTORS
The factors affecting location are classified into two types namely primary and secondary based on their effect. Those factors having direct bearing are classified into primary and those which have indirect impact are classified into secondary a) PRIMARY FACTORS 1. and real estate costs 1. plants supply parts to other facilities or rely on other facilities for management and staff support. The cost of raw materials is an important element of the total cost of production. Many executives consider weak unions or al low probability of union organizing efforts as a distinct advantage.
Supply of capital :Industries require huge capital hence capital market must be developed at industrial centres . industrial development banks and other financial services must also be encouraged . 5.3. Power: power may be electrical .Supply of labour :The supply of labour at low cost is important . All types of power required must be in abundance in order to ensure smooth flow of production.
Supply of Raw-material Supply Of Nearness Capital to market Transport facilitities Labour Supply Availability of power
6. Subsidies & Facilities
. 4. Nearness to source of labour supply is very important . producers should have regular labour supply by reducing absenteeism and strikes due to unsatisfactory working conditions . diesel and atomic energy . Therefore . b) SECONDARY FACTORS
Facilities Natural Factors
Factors Personal Factors Initial start & goodwill Historical & Religious Factors
Political Factors Govt.It should also be regular . Transport Facilities: Speedy transport facilities are needed for the regular and timely supply of raw materials at low. Not only this .
6. Nature of the service to be provided. Facility layout: Arrangement of machines.1. Jamshedpur became an industrial town in the following manner. e)Ecological and environment considerations etc. Kohlapur.Miscellaneous factorsa)sufficient water supply. L. “Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized”. 5. Benaras . Plant layout means the work of arranging machines. Zundi. “the overall objective of plant layout is to design a physical arrangement that most economically meets the required output – quantity and quality. weight of items to be produced.Initial Start and Goodwill. 4.g. Cost of the building to house the operation. Factors that influence layout 1.Agra . Historical and Religious Factors.Nasik etc. The product mix that must have a facility.Government Subsidies and Facilities.
Plant layout is an important decision as it represents long-term commitment.some places have industrial importance and some have religious importance e. An ideal plant layout should provide the optimum relationship among output. According to Riggs. 2. The fragility of the product or component. Industries grow because of these important features. PLANT LAYOUT A plant layout can be defined as follows: Plant layout refers to the arrangement of physical facilities such as machinery. furniture etc. equipments and service areas within a pre-designed factory building for the purpose of ensuring a steady. 4. 3. the design of factory building.Natural factors--affect the location of those industries which require a particular climate or weather conditions 2. equipment. in turn. or a manufacturing facility.Government gives subsidies and good industrial development facilities in backward areas . 5. 7. d)Community attitude. floor area and
. storage areas. b)Disposal of waste. Plant layout is affected by the system of production and affects. economical and prompt flow production.g. a warehouse. E. and/or work areas usually within the confines of a physical structure. an office. with in the factory building in 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. Volume.Once one industry starts at a certain place other industries come their. Industries reach these places to reap the benefits of such facilities.Political factors-States with stable government attract more industries 3. c)Dangers of air-attacks. such as a retail store.” According to J.Personal Factor: Personal likeness for a place affects the establishment of business at a place .
Utilizes available space effectively and efficiently. It facilitates the production process. easy production flow. supervision and control. Provides ease of supervision. for example using clearly marked routes. Facilitates coordination and face-to-face communication where appropriate.. 7. • Length of flow. Utilizes labor efficiently. 6. 3. All flow of materials should be clearly signposted. maximum exposure to natural light and ventilation.. well lit and. 5.manufacturing process. 9. and allows flexibility of operations. safety. The layout should provide for a well ventilated.
An efficient plant layout is one that can be instrumental in achieving the following objectives: a) Proper and efficient utilization of available floor space b) To ensure that work proceeds from one point to another point without any delay c) Provide enough production capacity. 4. and provides for employee’s convenience. minimizes material handling. Reduces hazards to personnel. Minimizes materials-handling costs. time and cost. use of space and expansion possibilities etc. Reduces bottlenecks in moving people or material. Pathways should be clearly defined and not cluttered. • taff comfort. 1. This generally means minimising the distance travelled by materials. The flow of materials and information should be channelled by the layout to fit best the objectives of the operation. 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 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
The general objectives of detailed design of factory layouts are: • Inherent safety. labour efficiency. promotes effective utilization of manpower.
. makes economic use of the building. • Clarity of flow. Dangerous processes should not be accessible without authorisation. pleasant working environment. Increases morale. Provides flexibility. 8. comfort at work. Fire exits should be clearly marked with uninhibited access. A Good Layout . 2. It is also important because it affects the flow of material and processes. where possible.
In job order or intermittent manufacturing on the other hand. d) Type of machinery: General purpose machines are often arranged as per process layout while special purpose machines are arranged according to product layout e) Repairs and maintenance: machines should be so arranged that adequate space is available between them for movement of equipment and people required for repairing the machines. security and satisfaction: A good layout is one that gives due consideration to workers safety and satisfaction and safeguards the plant and machinery against fire. 1.e. air conditioning. • Long-term flexibility. i. c) Production process: In assembly line industries. 2. i. Principle of minimum distance: This principle is concerned with the minimum travel (or movement) of man and materials. 4. product layout is better.. Principle of cubic space utilisation: The good layout is one that utilise both horizontal and vertical space. plant and equipment should be easily accessible for cleaning and maintenance.e. process layout is desirable. must be kept in mind. materials. Supervision and communication should be assisted by the location of staff and communication equipment.. there should not be any backtracking.
FACTORS INFLUENCING LAYOUT
While deciding his factory or unit or establishment or store. humidity control etc. • Use of space. All machines. Future needs (such as expansion) should be taken into account when designing the layout. Principle of flow: A good layout is one that makes the materials to move in forward direction towards the completion stage. This usually means minimising the space for a particular process. It is not only enough if only the floor space is utilised optimally but the third dimension. e. future requirements should be taken into account while designing the present layout. 7. Principle of safety. b) Nature of product: product layout is suitable for uniform products whereas process layout is more appropriate for custom-made products. • Accessibility.g. dust control.. The facilities should be arranged such that. 6.•
Management coordination. 5. machines and supporting services and others in order to get the optimum utilisation of resources and maximum effectiveness. a small-scale businessman should keep the following factors in mind: a) Factory building: The nature and size of the building determines the floor space available for layout. Principle of minimum handling: A good layout is one that reduces the material handling to the minimum. Principle of maximum flexibility: The good layout is one that can be altered without much cost and time. theft. All layouts should make best use of the total space available (including height as well as floor space). the height is also to be utilised effectively.
. Principle of integration: A good layout is one that integrates men. the total distance travelled by the men and materials should be minimum and as far as possible straight line movement should be preferred. Layouts need to be changed periodically. While designing the special requirements. i.e. 3. etc.
after which it is spread on a fine flexible wire or plastic mesh. if any. e. Service Establishments LAYOUT FOR MANUFACTURING UNITS In case of manufacturing unit. g) Plant environment: Heat. lockers. all types have the same processing requirements. Manufacturing units 2. Thus. equipment and other physical facilities in a planned manner within the factory premises. which is clear.
. First the wood chips are combined with chemicals. drinking water. Although different types of paper can be manufactured. light. It differs from plant to plant. chemicals and dyes.
TYPES OF LAYOUT
As discussed so far the plant layout facilitates the arrangement of machines. Plant layout for Small Scale business is closely linked with the factory building and built up area. toilets and other employee facilities. washroom. But the basic principles governing plant layout are more or less same. The mixing process combines the refined pulp with more water. This is shaken from side to side as it moves along to lock the fibres into the sheet of paper and to drain away the water. Future expansion and diversification may also be considered while planning factory layout. The drying process continues to reduce the water content in the paper before finally it is wound onto large reels. predictable and relatively easy to control. The press rollers squeeze more water out of the paper and press the fibres closer together. An entrepreneur must possess an expertise to lay down a proper layout for new or existing plants. ventilation and other aspects should be duly considered. paint shops and plating section should be located in another hall so that dangerous fumes can be removed through proper ventilation etc. From the point of view of plant layout. proper provision should be made for disposal of effluents. noise. plant layout may be of five types: (a) Product or line layout (b) Process or functional layout (c) Fixed position or location layout (d) Combination layout (e) Cellular layout PRODUCT OR LINE LAYOUT: Product layout involves locating the machines and equipment so that each product follows a pre-arranged route through a series of processes. from location to location and from industry to industry. the layout should be conducive to health and safety of employees.g. 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. Adequate safety arrangement should also be made. An example is paper making. water and steam in the ‘cooking’ process to form pulp. It should ensure free and efficient flow of men and materials. As far as small business is concerned. The products flow along a line of processes. we can classify small business or unit into three categories: 1. fillers.f) Human needs: Adequate arrangement should be made for cloakroom. The pulp is then put together through a cleaning process before being refined to help the fibres lock together. Traders 3.
Therefore materials are fed into the first machine and finished goods travel automatically from machine to machine. Heavy overhead charges c. c) Materials may be fed where they are required for assembly but not necessarily at one point.It makes sense then to locate these processes in the order that they are required (cooking. Breakdown of one machine will hamper the whole production process d. then mixing. The grouping of machines should be done keeping in mind the following general principles.g. squeezing. then cleaning. Under this. machines and equipments are arranged in one line depending upon the sequence of operations required for the product. shaking. drying and winding) and to let materials flow through them in a predictable manner. bamboos are fed into the machine at 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 output of one machine becoming input of the next. The materials move form one workstation to another sequentially without any backtracking or deviation. 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 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. machines are grouped in one sequence. Lesser flexibility as specially laid out for particular product. Under this. High initial capital investment in special purpose machine b. d) All the operations including assembly. spreading. e. testing packing must be included in the line A line layout for two products is given below. Suitability: Product layout is useful under following conditions: 1) Mass production of standardized products
. 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. in a paper mill.
Advantages: Product layout provides the following benefits: a) Low cost of material handling.
food processing and electronics etc.g. The range of products partially or completely assembled on lines includes toys. The usual assumption is that some form of pacing is present and the allowable processing time is equivalent for all workstations. sugar.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 Therefore. below Traditional assembly line
In this example. The completed part is returned to the conveyor and transported to the next operation. An operator removes a part from the conveyor and performs some assembly task at his or her workstation. the term assembly line refers to progressive assembly linked by some material-handling device. stand. parts move along a conveyor at a rate of one part per minute to three groups of workstations. equipment or departments are dedicated to a particular product line. line configuration (U-shape. pacing (mechanical. DESIGN OF PRODUCT LAYOUT In product layout. the second operation requires 1 minute per unit. rubber. workstation characteristics (workers may sit. and length of the line (few or many workers). and a straight-line flow of material movement is achievable. two operators. paper. appliances. chemicals. human). walk with the line. A few of these are material handling devices (belt or roller conveyor. A more-challenging problem is the determination of the optimum configuration of operators and buffers in a production flow process. The first workstation consists of three operators. Assembly lines are a special case of product layout. the manufacturing units involving continuous manufacturing process. overhead crane). duplicate equipment is employed to avoid backtracking. and the third. one operator. Since three operators work simultaneously at the first workstation. autos. or ride the line). and the third requires 2 minutes per unit. refineries. The number of operators at each workstation was chosen so that the line is balanced. In fact. on the average one part will
. Consider the case of traditional assembly lines illustrated in Fig. Within this broad definition. cement. virtually any product that has multiple parts and is produced in large volume uses assembly lines to some degree. the second. straight. A major design consideration in production lines is the assignment of operation so that all stages are more or less equally loaded. In a general sense. Adopting a product layout makes sense when the batch size of a given product or part is large relative to the number of different products or parts produced. branching). clothing and a wide variety of electronic components. there are important differences among line types. producing few standardized products continuously on the firm’s own specifications and in anticipation of sales would prefer product layout e. The first operation requires 3 minutes per unit. product mix (one product or multiple products). automobiles.
The total work to be performed at a workstation is equal to the sum of the tasks assigned to that workstation. one at a time. At each workstation. Repeat the process for workstation 2. using the formula 3.be completed each minute. An alternative to a conveyor-paced assembly-line is a sequence of workstations linked by gravity conveyors. If the tasks are somewhat complex. If efficiency is unsatisfactory. and a secondary rule to break ties.
. Generally. operators down the line may not be able to keep up with the flow of parts from the preceding workstation or may experience excessive idle time. This would occur when. which specifies the order in which tasks must be performed in the assembly process. Determine the theoretical minimum number of workstations (Nt) required to satisfy the workstation cycle time constraint using the formula 4. parts are also completed at this rate. Select a primary rule by which tasks are to be assigned to workstations. The most common assembly-line is a moving conveyor that passes a series of workstations in a uniform time interval called the workstation cycle time (which is also the time between successive units coming off the end of the line). or no other tasks are feasible because of time or sequence restrictions. 5. This is also true for other two stations. elements. The line-balancing problem is one of assigning all tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time. The steps in balancing an assembly line are: 1. Assign tasks. termed tasks. The problem is complicated by the relationships among tasks imposed by product design and process technologies. work is performed on a product either by adding parts or by completing assembly operations. which act as buffers between successive operations. workstation 3. 2. Such tasks are described by motion-time analysis. This is called the precedence relationship.
Assembly-line balancing often has implications for layout. Specify the sequential relationships among tasks using a precedence diagram. Since the parts arrive at a rate of one per minute. to the first workstation until the sum of the task times is equal to the workstation cycle time. for balance purposes. The work performed at each station is made up of many bits of work. Evaluate the efficiency of the balance derived using the formula
6. thus resulting in a higher assembly-time variance. and so that the unassigned (idle) time across all workstations is minimized. Determine the required workstation cycle time C. they are grouping that cannot be subdivided on the assembly-line without paying a penalty in extra motions. and work units. rebalance using a different decision rule. and so on until all tasks are assigned. workstation size or the number used would have to be physically modified. Assembly-line systems work well when there is a low variance in the times required to perform the individual subassemblies. 6.
The work. machines performing casting operations be grouped in the casting department. wiring.g. while other processes (e. welding department. drilling. Hence. is allocated to the machines according to loading schedules with the object of ensuring that each machine is fully loaded. Some processes (such as heat treatment) need specialist support (e. Process layout is shown in the following Plant Layout diagram. similar manufacturing processes (cutting. So the factory will be arranged with heat treatment together in one location and machining centres in another.g. Different products may require different processes so material flow patterns can be complex. An example is machining parts for aircraft engines. The process or functional layout is followed from historical period. machining centres) need technical support from machine setters/operators. which has to be done. E.) are located together to improve utilisation. the emphasis is on general purpose machine. Process layout shows movement of two products.g. In this type of layout machines of a similar type are arranged together at one place. heating department and painting department etc. etc. Different products will follow different routes around the factory.e.
The grouping of machines according to the process has to be done keeping in mind the following principles 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
. such layouts typically have drilling department. Machines performing drilling operations are arranged in the drilling department. 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. which follow the process layout. milling department.PROCESS LAYOUT: In process layout. Therefore the machines are installed in the plants. fume extraction).
Disadvantages: Product layout suffers from following drawbacks a. Job shop type of work is done 5. as a machine is not blocked for a single 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. Determine the size of each department. More frequent inspection is needed which results in costly supervision Suitability: Process layout is adopted when 1. including equipment and number of
. Obtain a drawing and description of the facility being designed. Work in progress inventory is high needing greater storage space e. Determine the arrangement of the equipment and people within each department. whereas those that have little interaction can be spatially separated. 2. its major components. jewelry. with movement of material or people. Products are not standardized 2. should be located close together. e. Use structured analytical methods to obtain a good general layout. Determine the arrangement of the department with respect to one another. 3. There is high degree of machine utilization. Identify and estimate the amount of material and personnel flow among work centres 4. Analysis of Layout by Process Steps involved: 1. List and describe each functional work centre. Work centres that interact frequently. There are frequent changes in design and style of product 4.g. 1.a) Lower initial capital investment in machines and equipments. process layout or functional layout is suitable for job order production involving non-repetitive processes and customer specifications and non-standardized products. 2. Time gap or lag in production is higher d. Material handling costs are high due to backtracking b. new accounts. The first step in the layout process is to identify and describe each work centre. or cashier. light and heavy engineering products. 5. c. storage area location. Quantity produced is small 3. The description should include the primary function of the work centre. Evaluate and modify the layout. 3. PROCEDURE FOR DESIGNING PROCESS LAYOUTS Process layout design determines the best relative locations of functional work centres. One approach of designing an efficient functional layout is described below. made to order furniture industries. incorporating details such as machine orientation. and equipment access. tailoring. More skilled labour is required resulting in higher cost. drilling. Machines are very expensive Thus.
loading docks. However. Each work centre corresponds to one row and one column. Flow Matrix Table Work centre A A B 25 C 32 D 0 E 80 F 0 G 30 H 5 I 15 Daily flows between
. In these situations.personnel. material flows and transporting costs can be estimated reasonably well using historical routings for products or through work sampling techniques applied to workers or jobs.
Relationship flow diagram To minimize transport times and material-handling costs. For manufacturing systems. Determining the locations of special structures and fixtures such as elevators. a flow-cost matrix. in many cases the facility and its characteristics are a given. and bathrooms becomes part of the layout process. the spatial configuration of the work centres and the size and shape of the facility are determined simultaneously. so fij and fji can be combined and the flows represented using only the upper right half of a matrix. it is helpful to begin by drawing relationship diagram as shown in Fig. To estimate the flows between work centres. we would like to place close together those work centres that have the greatest flow of materials and people between them. above. especially in a service system such as a business office or a university administration building. may be difficult to estimate precisely. The amounts and/or costs of flows among work centres are usually presented using a flow matrix. it is necessary to obtain a drawing of the facility being designed. Normally. The description should also include any special access needs (such as access to running water or an elevator) or restrictions (it must be in a clean area or away from heat). 1. and restrictions on activities. including shape and dimensions. or a proximity chart. The flow may be materials (expressed as the number of loads transported) or people who move between centres. such as weight limits on certain parts of a floor or foundation. locations of fixed structures. only the total amount. the direction of flow between work centres is not important. The flow of people. and the space required. and the element fij designates the amount of flow from work centre (row) I to work centre (column) j. although work sampling can be used to obtain rough estimates. For a new facility. Flow Matrix A flow matrix is a matrix of the estimated amounts of flow between each pair of work centres.
i and j. often we assume that the per unit cost of material and personnel flows between work centres is proportional to the distance between the centres. rather than providing quantitative measures of flow and cost. These charts are used when it is difficult to measure or estimate precise amounts or costs of flow among work centres. such as when employees in a corporate headquarters move among departments (payroll. Flow-cost Matrix Table Work centre A B C D E F G H I Daily cost for flows A . information systems) to carry out their work. cij. This is common when the primary flows involve people and do not have a direct cost but rather an indirect cost.25 32 0 80 0 30 5 15 between B .40 10 90 75 0 7 10 work centres C 0 10 50 45 60 0 (Rs per D . So for each type of flow between each pair of departments. Although more complicated cost functions can be accommodated.B C D E F G H I
10 0 -
30 10 35 -
75 50 0 20 -
0 45 25 80 0 -
7 60 90 0 15 0 50 -
10 0 12 0 70 20 45 80 -
2.35 0 50 90 240 day E 20 80 0 70 per 100 ft) F G H I 0 150 150 20 45 80 -
. printing. Proximity Chart Proximity charts (relationship charts) are distinguished from flow and flow-cost matrices by the fact that they describe qualitatively the desirability or need for work centres to be close together. Flow-cost Matrix A basic assumption of facility layout is that the cost of moving materials or people between work centers is a function of distance travelled. we estimate the cost per unit per unit distance.
I. where > means “more important or higher ranking than. Thus. 3. 6.” 5.
. and X) is assigned to each pair. U. any layout must satisfy A and X ratings.Richard Muther's Systematic Layout Planning a. Specifically. 4. With the exception of U rating. O. 1. 7. Utilizes a grid matrix to display the ratings of the relative importance of the distance between department REL chart
REL chart Closeness ratings: A: Absolutely necessary E: Especially important I: Important O: Ordinary closeness OK U: Unimportant X: Undesirable 1.” Distance Measurements Typically measured from department center to department center. 2. Hence. When evaluating activity relationships for N activities. Euclidean distances are appropriate when the layout space is very open and movement within it can follow a direct path. A and X ratings are considered to be most important ratings. Closeness ratings represent an ordered preference for “closeness. E. the reason for the assigned rating is indicated using a numeric code. A and X > E > I > O > U . All pairs of relationships are evaluated. there are N(N-1)/2 such evaluations. and a closeness rating (A.
Initial layout b. 2. Start with an initial layout with all departments made up of individual square grids (Note: each grid represents the same amount of space) 2. If the estimated cost of the best exchange in (2) is higher than the best cost found so far. ALDEP (Automated Layout Design Program) and CORELAP (Computerized Relationship Layout Planning) attempt to maximize a nearness rating within the facility dimension constraints. Inputs i. stop
. Distance based c. Discrete grids ii. Execute the exchange if the estimated cost of the best exchange in (2) is lower than the best cost found so far i. Only consider exchanging adjacent departments 3. The actual result of the exchange is problem-dependent 4. 1. CRAFT (Computerized Relative Allocation of Facilities Techniques) is the best known of the heuristics approaches. calculating more costs until a good solution is obtained. Load Distance Analysis The objective of this analysis is to reduce
i= j = 1 1
The fij in the above equation are the relationship values Computer Packages These are heuristic. Departments i and j exchange New centroid i = centroid j New centroid j = centroid i ii. Department representation i. No shape restrictions CRAFT automatically implements a modified pairwise interchange method Many details must be addressed CRAFT Algorithm 1. From-To chart ii. Cost matrix iii. CRAFT – Computerized Relative Allocation of Facilities Technique a. attempts to minimize materials-handling cost by calculating cost. pair-wise interchanging departments. improvement algorithms. PREP (Plant Re-layout and Evaluation Package) analyzes multilevel structures and is based on actual footage traveled by materials-handling equipment. Estimate the best two-way department exchange assuming department centroids exchange exactly i. Rectilinear (sometimes called rectangular) distance is more appropriate for layouts aisles or hallways where one generally reaches a destination after making one or more right turns. 3. Objective i.2.
Production period being very long. doctors and nurses are taken to the patient (product). dams.
Else. capital investment is very heavy b. e. flyovers. 3. c) It is more economical when several orders in different stages of progress are being executed simultaneously. ships.i. go to 1 FIXED POSITION OR LOCATION LAYOUT In this type of layout. The following figure shows a fixed position layout regarding shipbuilding. COMBINED LAYOUT Certain manufacturing units may require all three processes namely intermittent process (job shops). b) The layout is flexible as change in job design and operation sequence can be easily incorporated. only a product layout or process layout or fixed location layout does not exist. 2. a combination of the product and process layout or other combination are found. in practice. Generally.g. fabrication
. for industries involving the fabrication of parts and assembly. wagon building. Suitability: The fixed position layout is followed in following conditions 1. Equipment labour and components are moved to that location. Thus. the major product being produced is fixed at one location. In most of industries. in manufacturing concerns where several products are produced in repeated numbers with no likelihood of continuous production. there is possibility of confusion and conflicts among different workgroups. Disadvantages: Fixed position layout has the following drawbacks a. Very large space is required for storage of material and equipment near the product. boilers. the continuous process (mass production shops) and the representative process combined process [i. c. All facilities are brought and arranged around one work center. etc. d) Adjustments can be made to meet shortage of materials or absence of workers by changing the sequence of operations. As several operations are often carried out simultaneously. the medicines.
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. Manufacture of bulky and heavy products such as locomotives. generators. Construction of building. Hospital. This type of layout is not relevant for small scale entrepreneur. miscellaneous shops]. combined layout is followed. aircraft manufacturing.e.
the water treatment plant etc.
. are arranged on a functional basis. In soap. while the assembly areas often employ the product layout. the power house. the manufacturing of glycerin. the machinery manufacturing soap is arranged on the product line principle. but ancillary services such as heating.tends to employ the process layout. manufacturing plant.