UNIT-IV

Factory Design and Layout

 Factory design
Meaning:
❖ Factory design is used to plan changes when a factory
or production line is to be modified. Factory design is also
used to plan and layout completely new factories. This
structured process involves the systematic, goal-oriented
design of factories.
❖ It spans multiple phases ranging from operational
analysis and initial layout to implementation and
commissioning. The design process is supported by various
tools and methods. In most cases, specially tailored CAD
software is used to design the factory site and individual
factory buildings in 3D. Analysis and visualisation tools for
process optimisation and realistic presentation of the 3D
design are also often used.
 Factory design
❖ In factory design, completely new factories are often
referred to as green-field projects. When an existing
factory is expanded, altered or downsized, this is
referred to as a brown-field project.
❖ Nowadays, factory design is about creating a
production process that is sustainable but also adaptable
to meet future requirements. So it is not just a question
of one-off design and implementation, but rather of
thinking ahead and leaving enough room for future
tuning and adaptation. This is the only way for
manufacturing companies to remain flexible and
efficient.
 Factory design
Factory Design Normal Factory Design 3D
 Importance of Factory Design
✓ The topic of factory design usually comes up after concrete goals have
already been defined – i.e. when planning a new factory or alterations.
✓ This is when the likely project costs start to become clear, often requiring
substantial capital investment.
✓ Management then realise they have a major project on their hands, and that
in addition to extensive time being required for design and planning, expert
know-how will also be needed.
✓ This is precisely why external design companies are often called in to
support such projects.
✓ Factory design can be viewed as a one-off project that ends with
commissioning based on the assumption that fine-tuning won’t be needed.
✓ However, in practice change is inevitable, so it makes more sense to
prepare to be able to react flexibly and quickly to changes that are bound to
be coming anyway.
 Importance of Factory Design
✓ Factory design therefore means more than just completing a project that ends with
commissioning.
✓ Globalisation, increasing market dynamics and heightened cost pressures not only
change manufacturing requirements, but also demand an adjustment of the
production facilities.
✓ This is a continuous task for forward-looking companies and sets the scene for both
functional and efficient systems.
✓ After all, high investment sums should be characterised by a long service life.
✓ Basically, planning for change is about taking steps to ensure that the factory can
move towards several different visions of the future when needed.
✓ This could involve the integration of new products, or innovative production
philosophies and technologies.
✓ If it becomes necessary to produce new components or if the manufacturing process
changes, it is important to be able to repurpose the production facilities with
minimal further capital investment.
✓ This requires a high degree of versatility in the factory.
 Factory Layout
Meaning:
❑ A factory layout is a layout that includes everything
that is required for the manufacture of goods or the delivery
of services. A facility is an object that makes it easier to
complete any task. A machine tool, a work center, a
production cell, a machine shop, a department, a warehouse,
and so on are all examples.
❑ Factory layout refers to the arrangement of physical
facilities so as to have the quickest flow at the lowest cost
and with the least amount of handling in processing
from the receipt of material to the dispatch of the
finished product. The aim is to allocate and arrange space
and equipment to minimise operating costs.
 Importance of Factory Layout
✓ The proper and efficient use of the available floor space
✓ Work should proceed from one point to the next without delay
✓ Adequate production capacity and flexibility, including potential to
expand, at least in the short- to medium term
✓ Lower material handling costs
✓ Employee health, safety, accident and injury prevention
✓ Efficient labour and equipment utilization and productivity
✓ Maintaining quality standards, managing waste and storing
inventory
✓ Ease of supervision, and control
✓ Plant and equipment maintenance
✓ Complying with local regulations
 Factors Affecting Factory Layout
1. Nature of the product: The nature of the product to be
manufactured has a significant influence on plant
layout. Small and light products can be moved from
one machine to another with minimum effort and time
and therefore line layout would be more suitable.
Stationary layout would be suitable for heavy and bulky
products. In case of production of large variety of non-
standardized products, process layout is ideal.
2. Production volume: Line layout should be preferred if
standardized commodities are manufactured on a large
scale. Functional layout is suitable if production is
based on customers orders. It is better suited for low
volume job production.
 Factors Affecting Factory Layout
3. Location of the site: The topology and size of the site
influences the choice of a particular layout. The idea is
to maximize the utilization of space. Layout should also
suit the factory building. The positioning of elevators,
stairways, parking lots and storage points also influence
the layout.
4. Type of machines: Stationary layout is preferable if
machines are heavy and emit more noise. Such heavy
machinery can be fitted on the floor. Adequate space
should be provided for the location of machines and
also there should be sufficient space between them to
avoid accidents.
 Factors Affecting Factory Layout
5. Climate: Temperature, illumination, ventilation should be
considered while deciding on the type of layout. The above
factors should be considered in order to improve the health
and welfare of employees.
6. Service facilities: The layout should provide for the
comforts and welfare of the employees. It should have
adequate provision for rest rooms, drinking water, lavatory.
There should be sufficient space for free movement of
workers.
7. Safety of employees: While deciding on a particular type of
layout, the safety of employees should be given importance.
The layout should provide for obstruction free floors, non-
slippery floors, protection against dangerous fumes, excess
heat, strong odors Etc.
 Factors Affecting Factory Layout
8. Type of production: Layout plans differ according to the type of
production. In case of job orders, production of non-standardized
products are undertaken, and therefore functional or process outlet is
suitable. Line layout would be suitable when there is mass
production of standardized goods.
9. Type of process: In the case of intermittent type of production (bi-
cycle manufacturing, electronics), functional layout is suitable. For
synthetic type of Production (cement and automobile industries),
line layout is preferable.
10. Management policies: Policies of the management relating to type
of product, quality, scale of production, level of plant integration,
type of production, possibility of future expansion etc., influence the
type of layout to be adopted.
 Considerations in Factory Layout
1. Factory Building
✓ Ideally, a building should be built to suit the best
factory layout. But in practice, the layout might have to
be modified to fit a given building.
✓ The covered area, the number of stories, elevators and
stairs, parking, and storage area all affect the layout.
The plant site should also be considered in choosing the
layout for a factory.
2. The volume of Production
✓ Normally high-volume manufacturing requires product
layout and low-volume job production needs process
layout.
 Considerations in Factory Layout
3. Materials Handling
✓ The pattern of layout depends to a great extent on the
nature of materials and the materials handling plan. It is
necessary to provide adequate space for storage and
adequate space for the free movement of materials.
4. Type of Equipment
✓ Specifications of machinery and equipment are a prime
consideration in factory layout. General-purpose
machines reed– a different layout than specialized
machines.
✓ Adequate space must but provided for the location and
movement of all machines and equipment.
 Considerations in Factory Layout
5. Lighting and Ventilation
✓ In laying out a factory adequate provision must be
made for lighting ventilation and heating, These
are essential for the health…comfort and of
workers.
6. Service Facilities
✓ The layout of a factory must include proper
service facilities required for the comfort and
welfare of workers. These include canteen,
lockers, drinking water, toilets, first aid, fire
escapes, etc.
 Considerations in Factory Layout
7. Nature of Product
✓ The type of product to be manufactured affects
plant layout in several ways. Small and light
products can be moved easily to the machines
whereas heavy equipment requires assembly bays.
✓ One or a few standardized products can better be
produced through product layout while process
layout is more useful for producing a large variety
of non-standardized products.
✓ The quality and fragility of the product also
influence the layout.
 Standardization
What is Standardization?
❖ Standardization is the process of creating protocols to guide
the creation of a good or service based on the consensus of
all the relevant parties in the industry. The standards ensure
that goods or services produced in a specific industry come
with consistent quality and are equivalent to other
comparable products or services in the same industry.
❖ Standardization also helps in ensuring the safety,
interoperability, and compatibility of goods produced. Some
of the parties involved in the standardization processes
include users, interest groups, governments, corporations,
and standards organizations.
 Objectives of Standardization
Followings are the Objectives of Standardization:
• Standardization objects to bring all items together.
• To allow assembling of any future items in their proper place.
• To classify items as per their characteristics.
• To assign a special code number to each item to evade any
ambiguity or duplication.
• To promote variety reduction through codification.
• To formulate a common language for ease of identifying an item.
• To establish key parameters to specify an item.
• To state items according to national and international standards.
• To facilitate data processing and data analysis.
 TYPES OF STANDARDIZATION
Basically there are two types of Standardization
they are:
1. Rules of thumb vs. “scientific” standardization
2. Deliberate business standardization
(a) Generic standardization
(b) Brand standardization
(c) Industry standardization
(d) Market standardization
 1.Rules of thumb vs. “scientific”
standardization
❑ Are valuable standards in business born? Or, are they made?
❑ Do businesses have to wait around hoping that the innovative lightning of
valuable standardization will strike within their company? Or quickly copy
the breakthrough standardization strategies implemented competitors?
That’s the conventional perception. If standardization is feasible and
valuable, someone will do, or would have done, it. But is there an
alternative way to innovate and implement a process-standardization
strategy? Can a standardization strategy circumvent the unpredictability of
random, one-off standardization “breakthroughs”? If possible, this would
routinely and reliably extend the conventional footprint of standardization
and reap the resulting, time-tested benefits. It would accelerate automation,
enabling more reliable digital transformation. Think of this alternative
strategy as a sort of “standardization farming.” But this strategy requires a
vast, unplowed field of inefficient work methods to continually replace
with rigorous, scientifically developed standards. No problem. Rules of
thumb provide these inefficient methods (Examples of de facto standards,
above).
 Rules of thumb vs. “scientific”
standardization
❑ In fact, Frederick Winslow Taylor (1856-1915) spent his career developing and
promoting precisely that predictable process-standardization strategy — minus the
emphasis on automation. He published his seminal work in 1911, entitled The
Principles of Scientific Management. Although this masterpiece has historically
been misinterpreted, under-utilized, and overlooked, Taylor’s insistence on
scientifically developed, quantitative standards for work activities is directly
applicable for businesses struggling to identify digital transformation opportunities
– even in modern day knowledge work.
❑ Taylor noticed the vast drain on business efficiency that resulted from
management’s widespread reliance on common rules of thumb when rigorous,
scientifically accurate standards could be routinely developed as predictably
valuable replacements. And so, by his own 1911 description, Taylor set out to create
a management process-standardization approach based on “…the great gain, both
to employers and employees, which results from the substitution of scientific, for
rule-of-thumb methods in even the smallest details of the work… (to
achieve)…enormous saving of time and…increase in the output…”
 Rules of thumb vs. “scientific”
standardization
❑ More importantly for digital transformation today, Taylor noticed that the
intangible waste of avoidable work effort was “difficult to
perceive” because it left nothing behind: no scrap piles, no returned goods.
Appreciating these vast, stealthy losses required, according to Taylor, “an
act of memory, an effort of the imagination.” That means it’s likely to go
unnoticed, hiding in plain sight.
❑ “Rules of thumb” is an effective way to understand the “unstandardized”
problem. While businesses will push back against that portrayal – as they
have since Taylor’s time in the late 19th century – the fact is that existing
work is not un-standardized. Rather, it is under-standardized. That’s
because it operates according to rules-of-thumb, de facto standards. Rules
of thumb resemble a one-employee effort to standardize what is within
their control. The result is a least-effort, small-scale solution to
standardizing—a well-intentioned shortcut. Rules of thumb represent a
direct contradiction to the organization-wide, maximum-effort strategy to
achieve a massive-scale productivity gain from the development of
quantified, scientific standards.
 2.Deliberate business standardization
❑ Businesses consciously adhere to a wide range of diverse,
deliberately-developed standards—some voluntary, others
mandated by law. At the same time, they often seek to
deliberately establish standards as a part of their
competitive strategy. If successful, the business might
establish its product or service as a wider standard for the
industry, the region, or an entire category. Consider the
examples below:
(a) Generic standardization includes a product or service that
defines an entire, often new, class of similar things:
✓ Kleenex describes an entire class of facial tissues.
✓ Band-Aid, invented in 1920, describes an entire class of
adhesive bandages.
 2.Deliberate business standardization
(b) Brand standardization includes the visual, audio, or linguistic characteristics
which define a company or category of products:
✓ The Shell Oil Company logo requires no text, characters, or symbols for
recognition, worldwide.
✓ Some brand standards are so powerful that the owners temporarily modify them,
disrupting standard customer expectations to increase brand recognition and
awareness:
✓ Coca Cola temporarily relabeled its cans with people’s first names using its famous
logo script.
✓ Snickers candy bars were similarly rebranded with words such as “Hungry” and
“Satisfies.”
(c) Industry standardization are generally-accepted practices and/or technical
specifications adopted across an entire industry:
✓ The financial services industry maintains standards for the transfer of funds by
means of its Automated Clearing House (ACH) network.
✓ The tire industry maintains technical standards (such as P-metric and Euro-metric)
for the sizes of its products.
 2.Deliberate business standardization
(d) Market standardization are similar to industry
standards (above), except that they pertain to market
segments, which might cut across industries:
✓ Manufacturers of products such as electrical equipment
often produce different versions of the same device to
meet the differing needs of residential versus
commercial markets.
✓ Professional service standards and licensing
requirements often vary by market: General practice
physicians must meet different standards than those
promulgated for specialized surgeons.
 ADVANTAGES OF
STANDARDIZATION
1. Uniformity in quality:
✓ With standardized goods, there is homogeneity and consistency in quality. Hence, a consumer can buy a
product without much hesitation and risk as the quality of product will not change over a period of time,
thus leading to better goodwill.
2. Differential pricing :
✓ When goods are standardized and classified into various types, one can used differential pricing for
different grades of the product. Thus assuring better return to both buyer as well as seller. E.g. Dettol and
savlon
3.Increased in demand:
✓ As there is uniformity in size, form, quality and utility of all products of an enterprise, the customers rely on
these products. Sale of standardized goods increases.
4. Elimination of risk:
✓ The standards of products are determined keeping in mind the habits, tastes and nature of consumers and
the risk of selling standards goods is reduced.
5. Expanding the market :
✓ There is large-scale production of standard goods which results in many types of saving in production ,
distribution , advertising and sales promotion because of these the manufacturer is in a position to produce
best quality goods at minimum cost thus attracting a number of customer.
 ADVANTAGES OF
STANDARDIZATION
6. Availability of finance :
✓ Finance can be obtained easily for standard goods as financial institution prefer giving finance to those
enterprises who deal in standard goods.

7. No need for inspection:

✓ There is no need for inspecting the quality of a product as the form of size, quality and utility of all the
products in a lot are uniform in all respects and the consumers are convinced with it.

8. Standardization helps to reduce inventory items

9. It helps in evolving better means of communications about an item in the company.

10. It forms a base for the inventory analysis.

11. The specifications of items can be more clearly spelt out, making quality control.

12. In a developing economy like ours, where the need is to promote exports insistence on standards helps in
creating confidence in the international market.

13. By using National standards, it is easier to locate sources of supplies and in the case of machine parts; the
placements can be obtained easily. It could also be used in advertising the products as well as spare parts.
 1. Importance And Advantages Of
Standardization From Consumers' Viewpoint
The importance and advantages of standardization of consumers' point of view
can be mentioned as follows:
i. Buying Facility
❑ Customers can buy standardized goods easily. The customers need to
inspect all the goods which are not standardized or graded. The customers
can buy standardized goods without looking, inspecting or by looking
sample or from description.
ii. Using Facility
❑ Using method, instruction and composition of standardized goods are
given; this makes the consumers feel easy to use. Necessary repair facility
also is provided for some goods.
iii. Protection
❑ Customers do not have to suffer cheating from seller with standardized
goods. They can remain protected from adulteration and exploitation from
seller. As quality of the goods is already known, standardization minimizes
quality related risk.
 1. Importance And Advantages Of
Standardization From Consumers' Viewpoint
iv. Fair Price
❑ Since quality, measure, size of the product are known,
the customers can buy goods with fair price after
studying the market price.

v. Market Information
❑ Customers can get short description and information
about standardized goods through advertisements, other
buyers and different sources. The customers become
able to take proper buying decisions as they can get
information about prices, relative advantages, durability
etc. of standardized goods.
 2. Importance And Advantages Of
Standardization From Seller's View Point
The importance and advantages of standardization from seller's point of view can be mentioned as
follows:

i. Selling Facility
❑ The goods which are standardized become very easy for sellers to sell. No inspection is
needed to sell such goods; they can be sold out only by looking sample or description. The
sellers do not have to bother about showing sample or giving description if they are graded.
ii. Wider Market
❑ Determining standard of products, and grading them is the foundation of an organized, open
and wider market. This develops and expands market of any products. As the products are not
needed to be inspected, the customers even of far-off places send purchase order on the basis
of standard, grade, size, measurement etc.
iii. Loan Facility
❑ As the standardized goods have ready-market and fluctuation of price may be exceptional,
banks easily accept such goods as security to provide loans.
iv. Increase In Goodwill
❑ As standardized goods have certain quality, quantity and price; goodwill of the sellers of such
goods increases. They can earn more profit from selling high quality goods.
 3. Importance And Advantages Of
Standardization From Society's Viewpoint
Society can also get different benefits from standardized goods. The importance and advantages of
standardization from the point of view of society can be mentioned as follows:
i. Mass Production
❑ The society can get standard quality goods at lower price from mass production of the same standard
and same grade goods.
ii. Market Information
❑ As the producers and trade associations publish information and messages about standardized goods
in business bulletins, newspapers etc. conscious society know everything about the quality, standard,
measurement, using method of the goods etc.
iii. Protection
❑ There does not remain any risk for the society to be cheated by the sellers in buying standardized
goods. Every buyer knows the quality, standard and price of the goods. The society remains
protected from any adulteration in the standardization goods.
iv. Employment Creation
❑ When demand for standardized goods increases, the firm should to intensify the process
of production and distribution. For doing so more manpower is needed. The unemployed of the
society can get employment in the firm. Hence the society can increase income and make their living
standard better from employment.
 Quality Control
Meaning:
❑ Quality control is essential for any company that manufactures products or
provides a service. It helps improve customer satisfaction by consistently
delivering quality products or services, reducing wastage of resources and
increasing efficiency and profits for the company. Learning more about this
concept may help you understand why it's important for businesses and
your particular industry.
What is quality control?
❑ Quality control, or QC, is the process that businesses use to ensure that a
product or service adheres to a predefined set of quality standards or meets
the requirements of customers or clients. It usually requires the business to
create an environment where employees and management are always
striving for perfection. This involves extensive training, creating
benchmarks for measuring product or service quality and testing to check
for any significant variations in quality.
 Why is quality control important?
Quality control is important because it can:
1. Encourage quality consciousness: Quality control encourages
employees to keep quality in mind throughout the manufacturing
process, which can help the company achieve the desired level of
quality each time.
2. Lower production costs: The process used for quality control
checks the production of items that don't meet quality standards,
correcting any problems and bringing down the cost of production.
3. Increase customer satisfaction: Quality control ensures that
customers receive products free from error or defect, which
typically increases customer satisfaction overall.
4. Enhance goodwill: Producing high-quality products that meet all
of an organization's quality control requirements generally
indicates that the products consistently satisfy the customer's
needs, raising the established reputation of the business.
 Why is quality control important?
5. Raise employee morale: When employees recognize that they're
producing high-quality products that deliver value to consumers, it
can improve overall company morale.
6. Improve production methods: Quality control processes help
streamline and improve production processes, which means
improved methods and designs and often higher productivity.
7. Boost sales: Consistent quality control can help the company
develop a reputation for quality, which may attract new customers
and increase sales.
8. Ensure effective use of resources: Quality control ensures that a
company is effectively utilizing resources by minimizing product
and material waste and increasing efficiencies.
 How quality control works
Here are the typical steps to follow in a quality control process:
1. Set testing standards
✓ To implement a quality control program, a company first decides what standards it
wants to meet. Next, it determines the extent of the actions to take. For example, the
team must decide how many samples to take and test.
2. Test raw materials and various stages
✓ Quality control usually involves testing every step of a company's manufacturing
process. For example, QC employees may begin by testing the raw materials that
are used to create a product. They may continue testing at various stages within the
manufacturing process to identify where any problems are occurring.
3. Correct problems
✓ Employees correct the problems they identified to prevent them from happening
again in the future. The exact quality control that a company uses is dependent on
the industry and product. For example, in food manufacturing, the company QC
team performs microbiological testing to ensure that the completed product doesn't
make consumers sick and may review the food in its packaging to ensure it's
visually appealing. In the car manufacturing industry, however, quality control may
focus on the way that different parts interact and operate together.
 How quality control works
4. Collect data and make decisions
✓ Next, employees collect real-world data and create
reports to deliver to management to review and
determine any additional actions to take. For example,
the company may decide to repair any remaining
defective units or eliminate them. Similarly, if too many
of the products are defective, it's best for the company
to establish a plan for improving the production process
or, if the problem is with the supplies being used,
purchasing raw materials from elsewhere. It's important
for the company to continue using its quality control
method to monitor for new signs of problems.
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