MEE1014

INDUSTRIAL ENGINEERING AND MANAGEMENT

Dr SAMPATH KUMAR T
Associate Professor
School of Mechanical Engineering
VIT University
Sampath.thepperumal@vit.ac.in
9443964297
Module V

Plant location and Plant layout:

Plant location –need - Factors – comparison – quantitative methods for
evaluation Plant layout: Objectives principles – factors influencing – tools and
techniques including computer based layout design – CRAFT, ALDEP,
CORELAP.

Dr T SAMPATH KUMAR, ASSOCIATE

13-09-2019 2
PROFESSOR - SMEC
 Plant Location
 Basic factors to be considered
 Plant location and site selection
 Consideration in facilities Planning and layout capacity
 Serviceability and flexibility
 Analysis in selection of Equipment
 Space requirements
 Machine & labour requirements and selection

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 Plant location

• Plant location means finding a suitable location, area, place,

etc., where the plant can function satisfactorily.

It involves two important activities

1. To select a proper geographic region
2. To select a specific site within the region

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Factors to be considered for location

• Regional and local development agencies

• Chamber of commerce
• Local government officials
• Local commercial banks
• State Government agencies
• Utilities companies
• Bureau of labour statistics

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 General Location of a Factory

• Availability of raw materials • Availability of capital

• Nearness to raw materials
• Nearness to Market
• Transport facilities
• Availability of labour
• Availability of power and fuel
• Climatic and atmospheric conditions
• Availability of water
• Land
• Community attitude
• Business and commercial facilities
• Existence of related industries
• Other factors such as local bye-laws, fire
protection facilities, post & telegraph
facilities

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Selection of Plant site
• Availability of cheap land and expansion facility
• Cost of levelling the land and soil conditions
• Cost of construction materials
• Facilities for the upkeep and general maintenance
• Facilities for housing the workers, conveyance, etc.,
• Facilities for transport of materials
• Cost of laying the water supply and sewage facilities
• Cost of installation of electricity and other facilities
• Possibilities for disposing waste
• Restrictions by the town planning department local bye-laws
• Sufficient space should be provided for parking and out door storage
Dr T SAMPATH KUMAR, ASSOCIATE
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PROFESSOR - SMEC
 Urban location of a factory
Advantages:
• Better transport facilities
• Labour supply (Skilled and unskilled)
• Better education facilities
• Better banking facilities
• Abequate police and fire protection
• Greater amenities such as shopping centres, medical facilities,
services, etc.
• Availability of power and water
• Good advertising value
Dr T SAMPATH KUMAR, ASSOCIATE
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PROFESSOR - SMEC
 Urban location of a factory

Disadvantage:
• Higher price of land
• Development difficult and expensive
• Various municipal restriction
• Higher cost of living
• Effect of overcrowding
• Higher wages, rents, taxes

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Country location of a factory

Advantages:
• Cheap land
• Facilities of future expansion
• Rent, Taxes, wages are low
• Lower cost of living
• Less fire hazard
• No congestion in housing
• No restrictions such as in Muncipalities
• Less labour trouble
Dr T SAMPATH KUMAR, ASSOCIATE
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PROFESSOR - SMEC
 Country location of a factory

Disadvantages:
• Restricted supply of skilled labour
• Less attraction on country site
• Housing difficulties
• Lack of social amenities
• Lack of communication facilities
• Poor educational facilities
• Scarcity of power and water supply
Dr T SAMPATH KUMAR, ASSOCIATE
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PROFESSOR - SMEC
 Consideration in facilities planning and layout

• Production equipment
• Handling equipment
• Auxiliary equipment
• Space
• Land
• Buildings
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PROFESSOR - SMEC
 Facilities design procedure
• Procure basic data
• Analyse basic data
• Design production process
• Plan material flow pattern
• Consider general material handling plan
• Calculate equipment requirements
• Plan individual work areas
• Select specific material handling equipment
• Coordinate groups of related operations
• Design activity relationship
• Determine storage requirements
• Plan service and auxiliary activities
• Determine space requirements
• Allocate activity areas to total space
• Consider building types
• Construct the master layout
• Evaluate, adjust and check layout with
appropriate personnel
• Obtain Approvals
• Install layout
• Follow up on implementation of layout

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Equipment requirement for plant operation

• The product – Its size, quantities to be moved

• The plant factors – Columns spacing, door & elevator location,
floor load capacities
• Methods factor – Sequence of operations, production methods
or equipment, etc.,
• Cost data

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Selection of equipment faces mainly two problems
1) Economic problems
 It depends on the requirement of initial capital outlay and the
estimated unit cost of production.

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Selection of equipment faces mainly two problems
• Technical problems
 Floor space
 Attention required in handling skill
 Source of power for movement
 Path of movement
 Direction of movement
 Form of material to be moved

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PROFESSOR - SMEC
 Classification of equipment's

• Manually operated equipment

• Semi automatic equipment
• Fully automatic equipment

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PROFESSOR - SMEC
 Classification of equipment's types

• Standard machinery
• Universal machinery
• Multi-operation machinery
• Single purpose machinery
• Unit type machinery

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PROFESSOR - SMEC
 Capacity
• The amount of output actually achieved. (ie.) The amount that
the firm is “capable of producing”
• The maximum rate of output attainable over a specified period
of time with latest product specifications, work force and
equipment.

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Plant Capacity

• Plant capacity means the maximum capability.

• The capacity must be very appropriate.
• If the capacity is beyond the estimated maximum, that over
capacity is unproductive and creates an overhead charges for
the company without any benefit. So the plant must be well
equipped with its maximum capacity.

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Integration of equipment and capacity
• Machine time
• Inventory of materials and stock
• Interruptions and emergencies
• Provision to vary the output rate

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Serviceability
• To provide room for maintenance and services relating to
machinery.
• These includes additional space, space for access to machines,
motors, pumps and different service processes and service
equipment.
• A small or a service machine shop may be included in the layout.
• The service operations for buildings, production machinery, service
lines, service equipment and handling equipment, etc.,
• The maintenance operations like oiling, greasing, cleaning, painting,
repairing and others.

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Serviceability
• Service lines are required for both machinery and processes.
The major service line includes
1. Water, electricity for processes and lighting
2. Lubricating oil
3. Steam for process and heating
4. Gas
5. Acid
6. Fuel
7. Other process liquid
8. Sewage and waste disposal
Dr T SAMPATH KUMAR, ASSOCIATE
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PROFESSOR - SMEC
 Flexibility

• While planning the industrial layout, sufficient care must be

taken to provide space for future expansion, alteration and
possible development.
• The flexibility in the process equipment and machinery due to
accelerating technological advances.

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Flexibility

• Demands for future flexibility can be made successfully if they

are anticipated in the initial planning.
• The management should consider the planning new plants or
modifications of the existing layout.

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Flexibility
Important methods to plan for flexibility are listed below
• Provide a large size bay
• Permit alternative arrangement for equipment
• Providing clear heights for production and storage
• Installation of utilities for electricity and sprinklers on the grid
• Provision for uniform lighting for the entire plant
• Locating light fixtures, sprinklers and unit heaters
• Providing quick utility connections for distribution lines
• Use of movable partitions
• Installing a slope between ground level and floor level
• Provision for future balconies
• Design of adequate floor and storage spaces
• Use of flexible material handling equipment
• Planning adequate utilities and service facilities

Dr T SAMPATH KUMAR, ASSOCIATE

13-09-2019 26
PROFESSOR - SMEC
 Analysis in Selection of Equipment's
• The selection of equipment mainly depends upon the process
followed in any industries
• An appropriate selection of equipment is an prerequisite in
attaining the production of low cost products

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Equipment selection

When
• Production capacity is to be expanded
• Radical changes in the design of the product must be
made
• Technological improvements are to be introduced so as to
meet competition and reduce the cost.

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Main factors for selection of specific equipment
• Kind of operations
• Quality and degree of precision needed
• Anticipated future changes in the product design
• Volume of production determined by the forecast of demand
• Available equipment beyond plant capacity
• Anticipated production rates by various capacity machine units
• Attainment of maintenance balance capacity in the equipment
• Kind of layout- Whether product or process layout

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Number of equipment or machine for each operation
N = (T/60) (P/HC)
Where
N = Number of machine required
T = Standard time for the operation in minutes
P = Production required per day of standard number of hours
H = Standard number of hours per day
C = Factor of use for equipment, take as 8.5

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Space Requirements

• The design of an industrial layout includes analysis of flow

pattern, auxiliary service activities, laying of equipment and
machineries, free area for walking, storage space, space for
material handling, etc.,
• Auxiliary service activity spaces like locker room, tool room,
first aid and food service areas.

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Space Requirements

Space estimating for specific activities like

• Receiving
• Production
• Assembling
• Warehousing
• Office
• shipping

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Space Requirements
Factors to be considered for the space requirements
 General factors
• Space for production and service
• Sales forecast
• Technological advances
• Possible changes in product line
• Master/Long range/Expansion plans
• Flexibility
• Number of employees

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Space Requirements

 Production
• Size and nature of product
• Method of production
• Nature and number of process
• Work standards
• Production efficiency
• Number and size of machine
Dr T SAMPATH KUMAR, ASSOCIATE
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PROFESSOR - SMEC
• Flow pattern
• Number of operators
• Handling methods
• Equipment's
• Storage requirements
• Scrap percentage
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 Space Requirements

 Buildings  Cost
• Type and construction of plot • Capital Investment
• Floor load capacity • Interest
• Infrastructure • Economic trends
• Condition of soil
• Column spacing
• Utilities
• Plot size
Dr T SAMPATH KUMAR, ASSOCIATE
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PROFESSOR - SMEC
 Factors for allocation of space
• Relationship between internal and external material flow
• Flexibility for changing needs
• Building characteristics
• Environmental requirements
• Use of balcony, basement, roof, etc.,
• Product and process changes
• Location and size of aisles
• External facilities
• Arrangement required for each activity
• Building orientation
• Topography
• Transportation facilities
• Location of service activities
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Storage requirements Dr T SAMPATH KUMAR, ASSOCIATE
PROFESSOR - SMEC
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 Labour and machine requirement

• Any industry need people administration, supervision of

required to assist follow, guide, operate machineries and
handling equipment's.
• Machine needed as per the product or process layouts. Fully
automated or semi automated machines

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Labour requirements

• Based on the production targets fixed

• Based on the machineries
• Skilled and semi-skilled employees
• Cleaning purposes
• Office staffs
• For material handling

Dr T SAMPATH KUMAR, ASSOCIATE

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PROFESSOR - SMEC
 Machine Selection
Factors to be considered for selecting Machines
• Need of machines: before selecting any machine its degree of need is to be
checked thoroughly. The alternates available to the machine also should be
analyzed.
• Cost: cost of machine is a very important factor to be considered before
selecting any machine. The machine should be within the allocated budget.
• Operating cost: capital cost and operating cost should be taken into account.
Similarly, maintenance cost, repair cost, and space required for the machine
also should be analyzed.
• Durability: machine should be original, durable and lost lasting. machines are
very expensive and it is not possible to purchase new machine every year.
Therefore, the machine to be purchased must be free from problem of frequent
break down. This also saves in repair cost
Dr T SAMPATH KUMAR, ASSOCIATE
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PROFESSOR - SMEC
 Machine Selection
• Easy to operate and flexible: machine should be easy to operate and
flexible. There shouldn’t be need of any additional training and
specialization for handling of machine. Machine should be usable for
numerous purposes too
• Servicing: machines require regular repair and maintenance,. The spare
parts of the machines should be easily available in the market. Likewise the
servicing facilities should be readily available.
• Quality and speed: machine should be of higher quality. It should be
speedy in nature.

Dr T SAMPATH KUMAR, ASSOCIATE

13-09-2019 40
PROFESSOR - SMEC