PLD Lectures Old

ET ZC 424 – Plant Layout and Design –
L1
BITS Pilani Naga Vamsi Krishna Jasti

Mechanical Engineering
Pilani Campus
BITS Pilani
Pilani Campus
Introduction to Plant Layout

We shall cover these topics today
• What is Plant Layout?

• Why do we need layout?
• What is the objective of a layout?
• What Principles govern a layout?
• What advantages do we accrue by having a good
layout?
• Why/when do we need to plan for re-layout?
• Typical problems in layout designs.
ETZC 422 - PLANT LAYOUT AND DESIGN 3

BITS Pilani, Pilani Campus
Need for Facilities Management
Facility management (or facilities management or FM) is an interdisciplinary

field devoted to the coordination of space, infrastructure, people and
organization, often associated with the administration of office blocks,
arenas, schools, sporting complexes, convention centres, shopping
complexes, hospitals, hotels, manufacturing, shipping, etc
Source: Wikipedia
Facilities management is the integration of processes within an organisation

to maintain and develop the agreed services which support and improve the
effectiveness of its primary activities.
Source: http://www.i-fm.net/fm-info

Facility Management Scope
– Inbound logistics (receipt, inspection, quarantine)

– Storage
– Manufacturing / processing
– Conveyance
– Outbound logistics (warehouse, retail stores, transit storage, servicing)
– Services (tangible & intangible)
– Employee services (food, shelter, health & hygiene, safety & security,
recreation & emergency)
– Customer & guest services
– Disposal

Why are we talking about Facilities
Management now?
• Facilities management plans, procures, organizes and provides

various facilities for proper functioning of a plant.
• Plant Layout and Design is a subset of Facilities Management.
• Plant Layouts deals with arrangement of physical facilities and
the man-power needed to manufacture a product.
• The physical facilities include; space needed for material
movement and path for operators movements, storage,
maintenance, processing machines, supporting equipment
and rest areas.
• The success of an organization depends on a proper and
effective layout design.
Definitions of Plant Layout
• Physical location or configuration of departments,

workstations and equipment in the conversion process.
• Arrangement of physical resources to create a product.
• Judicial selection of the location of plants and machines in
such a way as to facilitate uninterrupted and quick
movements of input materials through predetermined cycle
of operations till these are transformed as outputs in the form
of product or services with minimum material management
and handling with maximum efficiency and quality of
operation leading to minimum overall cost of entire
operations / processes.

Definitions continued
• Placing the right equipment, coupled with right method, in

the right place to permit the processing of product in the
most effective manner through the shortest possible distance
and in the shortest possible time.
• Technique of locating different machines and plant services
within the factory so that the greatest possible output of high
quality at lowest possible total cost can be made available.

Importance of Plant Layouts
• It is long-term commitment
• It facilitates the production process, minimizes material
handling, time and cost, and allows flexibility of operations
• It facilitates easy production flow, makes economic use of the
building, promotes effective utilization of manpower, and
provides for employee’s convenience, safety, comfort at work,
maximum exposure to natural light and ventilation.
• it affects the flow of material and processes, labour efficiency,
supervision and control, use of space and expansion
possibilities .
Based on the discussions so far, can you list what should be the
objectives of a plant layout?
Objectives of Plant layouts
• Increased output or turnover

• Fewer production delays
• Greater utilization of man and machinery
• Minimum capital investment.
• Complete utilization of floor and cubic space
• Reduced WIP
• Minimum material handling
• No congestion and confusion
• Flexibility – ability to adjust to changing conditions
• Better supervision
• Satisfaction and safety of workers

Principles for plant layouts
• Principle of over-all integration

• Principle of minimum distance
• Principle of flow
• Principle of cubic space
• Principle of satisfaction and safety
• Principle of flexibility
• Principle of expansion
• Principle of versatility
• Principle of orderliness

Factors affecting Layout
• Organization
• Factory Building
• Location of departments
• Type of product, method of production, production process
• Production capacity
• Type of industry – process, discrete or continuous
• Material flow pattern
• Space requirement for each resource
• Safety and health factors
• Provision for future expansions
• Degree of flexibility required
• Storage system planned – centralized or decentralized.

Symptoms of good layout
• Safe, neat and clean layout • No bottleneck
• Less WIP • Easy to supervise and
• No traffic congestion control
• Better utilization of • Flexible to meet variations
available resources in output and varieties
• Short material flow and • Production is economical
production cycle
• No back-tracking
• Comfortable working with
less mental and physical
strain

Re-layout decision
When:
• Making minor changes in existing layout – technology changes
or product design change
• Locating new machines – SPM or custom made machines
procured to improve productivity.
• Modifying a part of the plant – technology changes,
replacement of obsolete equipment, process redesign etc
• Changes in MHS – new or better MHS procured to minimize
movements or time.

Re-layout decision
Common reason for redesign of layouts:

• Inefficient operations – high production costs and bottlenecks
• Changes in product / service design
• Introduction of new product
• Change in mix of output or volume of production
• Obsolescence or failure of existing machines
• Higher rejections or scrap
• Congestion in plant, lack of storage space
• Improper working conditions – noise, light, temperature,
humidity etc (contd)

Re-layout decision (contd)
• High accident rates or safety hazard

• Environmental changes
• Change in factory legislation
• Redesign of material handling systems

Types of Layout problems
• Enlarging or reducing the existing departments –

change in demand of product, product design,
process design
• Movement of department – process redesign, safety
and hazard issues, convenience
• Addition of department – process redesign, product
design, technology changes
• Replacing or adding new machines - new
technology, obsolescence etc.,

Live Cases
• An auto parts manufacturer shifted one of its low-cost-product to a remote facility

to gain on tax rebates – This new facility landed-up in a labour unrest due to lack of
employee amenities. This facility was re-created after the labour unrest with
modern machines but had to be restructured soon after due to change in market
demand and one of its major export customer switched loyalty
• An industrial product manufacturer located in a metro city acquired a remote

facility that was manufacturing low-tech standard products. As a part of
consolidation, merged its high-tech product manufacturing facility from its metro
plant with the acquired plant – the high-tech product business suffered due to
delayed deliveries and quality complaints

Cases ….. Contd…
• Wal-Mart has a system of cross docking in place of a warehouse
• Toyota converted its component stores into production shop after successful
implementation of JIT and moved its kanbans to shop floor
• Tyco saved considerable cost and improved production per unit area after
converting its component stores as high-raised vertical storage
• An auto component manufacturer reduced inventory multi-fold after replacing its

trolley by gravity chutes
• Mercedes Benz Research & Development spends considerable resource in

evaluating its storage (stack height & orientation) and transportation systems
(through rail, road & sea)

Recap
• What is Facility Management

• What is Plant Layouts
• Various definitions of Plant Layout
• Objectives, Principles of Plant layout
• Symptoms of good layout
• Reasons to go for re-layout design

PLANT LAYOUT AND DESIGN
ETZC 424 – L2

Pilani Campus
BITS Pilani
Pilani Campus
Factors influencing Plant Layout

Recap of L1
• What is Facility Management

• What is Plant Layouts
• Various definitions of Plant Layout
• Objectives, Principles of Plant layout
• Symptoms of good layout
• Reasons to go for re-layout design

Today’s Topic
• We shall be understanding the various factors that influence

Plant Layout in detail.
• Also study their inter-relationships.
• Understand the influence factors and determine their impact

with few case studies.

Mini Cases
• Germany was well advanced in manufacturing bombers

during the WWII. It was producing bombers in its various
factories spread over the areas under its occupation. Each
bombers was manufactured by a team of highly skilled
technicians from start to finish. In spite of this, it was not able
to meet the requirements during the war. America did not
have any industry or skilled workforce to make bombers.
Technicians involved in car manufacturing were diverted to
manufacture bombers. Yet America was able to ensure a
steady supply of planes and easily win the war. How and
Why?

Mini Cases
• A flywheel manufacturer used an ingot to make slices and use

them to machine the flywheels for an industry. This worked
fine for some time. As the number of orders increased, using
an ingot was found to be uneconomical owing to more scrap
and other methods of sourcing raw material was proposed.
Forgings or castings were proposed as alternatives. Each
alternative meant that the subsequent processing had to be
modified along with the machines, MHS and
tools/jigs/fixtures.

Mini Cases
• The CSIA Mumbai was developed in the heart of Mumbai with

two intersecting runways. The runways were sufficient for the
aviation traffic till about 5 years back. Since then, due to
sudden boom in air travel and entry of new operators, it was
found that the current runways were not sufficient to handle
the load. Since the airport is located in the city and there are
many buildings surrounding it, there is no scope for
expansion. A new airport is proposed at Panvel to replace the
present airport. Huge investments in purchasing land,
construction of airport, developing roads and utilities specially
for the new airport is planned now.

What are those factors that influence
Plant Layout
• Type of industry – Continuous / Repetitive / Intermittent
• Product – Product Design / Specification / Quality, Rate of
production, varieties
• Method of Production
• Machinery and Equipment
• Material – size, shape, weight, condition and specification
• Movement – men and material
• Employee facilities
• Services
• Factory Building
• Expansion
• Flexibility
• Adaptability and versatility
• Location / Site
1. Type of Industry
• Continuous Process Industry : Power Plants, Steel

Industry, Chemical Industry, Pharma Industry.
• Repetitive Process Industry: Automotive Assembly
lines, Electrical Appliance Industry
• Intermittent Process Industry: One of a kind
manufacturing, small batch production of variety of
items.

2. Product
• Product Design – features, special operations

• Product Specification – tolerances, material
type, hardness, surface finish.
• Quantity, Rate of Production, Variety
– Production quantity per time period
– Product mix to be produced (batch or mixed
mode)
– Production quantity based on forecast

3. Methods of Manufacturing
• Decides the machines, tools, material handling

equipment needed.
• Decides the operations that need to be performed
and the sequence.
• Decides the number of machines and types of
machines that will be needed and the skills of
operators.
• Decides the space requirement for machines, MHS,
operators, Maintenance etc.

4. Machinery and Equipment
• The type of machinery decides the amount of space to be

allocated for each.
• Correspondingly, it decides the orientation and placement of
each machinery with respect to each other.
• MHS need specified space that has to be earmarked for
straight travel, turns etc.
• Requirement of auxiliary equipment like jigs and fixtures, load
unload stations, WIP racks etc decide the layout design.

5. Material
• Size
• Shape and Bulk
• Weight
• Conditions
• Special Characteristics

6. Movement
• Movement of men for loading/unloading, inspection of

machine, operation of machine, maintenance of machine.
• Movement of material based on the type of manufacturing
process selected dictates the layout.
• Has direct bearing on the volume and variety of products to
manufacture
• Determine if the movements are value adding or not.

7. Employee Facilities
• Ergonomic working conditions

• Rest areas
• Break areas
• Medical rooms

8. Services
• Support functions needed for proper working of an

industry
• Piping, exhaust and ventilation ducts, Electrical/
Pneumatic / Hydraulic circuitry
• Safety features – fire, hazardous gases, sound
proofing, dust proofing, temperature control

9. Building
• Decides the space available for machines and

facilities
• Shed or concrete structure
• Has bearing on the type of product being
manufactured
• Option of using cubic space where permissible
• Location of departments, access paths and offices
may be decided
• Can provide aesthetic value to the plant.
10. Expansion
• Possibility of expansion needs to be planned

before a layout is finalized.
• Areas earmarked for expansion need to be
maintained and not encroached upon.
• Layout may need to be modified during the
expansion phase (in some cases).
• In some cases, use of cubic space may
increase capacity in place of expansion.
11. Flexibility
• Anticipation of future changes in technology,

processes, materials is essential in layout design.
• The layout needs to be made simple and easy to
reconfigure based on changes in product design,
process design or machinery.
• Simpler the layout and use of general purpose
machines makes the layouts flexible to a large extent.
• Space is one of the consideration required while
keeping the layout flexible.

12. Adaptability and Versatility
• Layouts designed to cover fluctuations in the

manufacturing process are said to be adaptable
(ability to adapt to new situations quickly)
• Maintain a buffer machine near bottleneck point,
alternate routing, buffer storages etc
• Versatility needs machines that can perform various
type of operation depending on variety of products
that need to be made. Calls for multi-skilled
personnel too.

13. Location / Site
• Location provides the environmental conditions that

decides the product to be made and to some extent
the percentage of total volume of production.
• Site provides a boundary of area on which the layout
has to be designed. The topography is useful to
decide the placement of departments, access paths,
office space, utilities etc.
• The judicious application of principles of good layout
design determines the best layout for a location /
site.

Coming back to our case lets ……..
Give your opinion on each one of them

Case 1
• Germany was well advanced in manufacturing bombers

during the WWII. It was producing bombers in its various
factories spread over the areas under its occupation. Each
bombers was manufactured by a team of highly skilled
technicians from start to finish. In spite of this, it was not able
to meet the requirements during the war. America did not
have any industry or skilled workforce to make bombers.
Technicians involved in car manufacturing were diverted to
manufacture bombers. Yet America was able to ensure a
steady supply of planes and easily win the war. How and
Why?

Case 2
• A flywheel manufacturer used an ingot to make slices and use

them to machine the flywheels for an industry. This worked
fine for some time. As the number of orders increased, using
an ingot was found to be uneconomical owing to more scrap
and other methods of sourcing raw material was proposed.
Forgings or castings were proposed as alternatives. Each
alternative meant that the subsequent processing had to be
modified along with the machines, MHS and
tools/jigs/fixtures.

Case 3
• The CSIA Mumbai was developed in the heart of Mumbai with

two intersecting runways. The runways were sufficient for the
aviation traffic till about 5 years back. Since then, due to
sudden boom in air travel and entry of new operators, it was
found that the current runways were not sufficient to handle
the load. Since the airport is located in the city and there are
many buildings surrounding it, there is no scope for
expansion. A new airport is proposed at Panvel to replace the
present airport. Huge investments in purchasing land,
construction of airport, developing roads and utilities specially
for the new airport is planned now.

Questions???

Wrap-up
• Listed the various factors that influence the

layout design
• Identified few inter-related factors
• Understood how each factor relates to the
objectives of layout design.

PLANT LAYOUTS AND DESIGN
ETZC 424 – L 3

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Types of Layouts

Recap : Lecture 2
• Listed the various factors that influence the layout design

• Identified few inter-related factors
• Understood how each factor relates to the objectives of
layout design.
ETZC 424 - Plant Layout and Design 3

This session
• Types of layouts
• Advantages / disadvantages of each type
• P – Q chart
• Break Even Analysis

Why do we need layout?
• Basic need is to organize the resources in the most optimal

way so as to meet the objectives of a good layout design.
• [Let us recall the objectives of a good layout]
• Selection of an optimal layout depends upon
– The type of product to manufacture
– Volume of production
– Size of product
– Skill / tools needed to manufacture
• Break Even Analysis is used to analyze selection of layouts.

What are the types of layouts?
Fixed Process Product GT Hybrid

Layout Layout Layout Layout Layout
1 2 3 4 5

1. Fixed Position Layout
• Material or product is placed in a fixed location and machines,

tools, subassemblies etc. are brought to the product.
• Operations are performed by a team of highly skilled
operators.
• Usually used for those parts that are huge and bulky, which
can not be moved from one place to another place.
• The manufacturing time for product is generally big.
• Number of parts to be produced are very few.
• Project Management techniques are used to perform
scheduling of tasks; CPM / PERT, Gantt Charts etc.

Advantages of Fixed Position Layout
• Highly flexible to frequent changes in product design

• Reduced handling and assembly of major
components
• Responsibility of quality is easily pin pointed
• Caters to intermittent demand and variety of product
types
• Capital investment in layout is low
• Production planning and scheduling are simple.

Disadvantages
• Mass Production is not possible

• Not adaptable to operations requiring complex and
huge equipment.
• Productivity is very low.

Typical Industries
• Ship building / dismantling, infrastructure

projects, Steam or hydraulic turbines
assembly, blast furnaces, Cooling towers,
boiler installation etc. come under this type of
layout.

2. Process Layout
• All machines / equipment of similar nature are grouped

together in one area.
• Part travels from one machine to another machine located at
different areas depending upon the sequence of operation
needed.
• Is preferred when the variety in the product is high and the
volume (quantity) required is less.
• Job shop type production used this type of layout.
• Manufacturing cost is relatively high.
• Machine utilization is average
• Multi-skilled workforce is a must.
Advantages of Process Layout
• Low capital investment in equipment as they are general

purpose machines and standard tools / jigs and fixtures are
used.
• Higher machine utilizations due to flexible sequencing of
operations for low and medium production runs
• Machine breakdowns will not hold up production
• Change of product design can be easily accommodated
• Expansion is less costly and does not disrupt production.

Disadvantages of Process Layout
• Production planning and control / routing is complex.

• More time spent in material handling as the flow of work does
not follow a fixed pattern.
• High WIP
• Longer manufacturing lead times due to WIP and more
material handling.
• More floor space utilization
• Lower machine utilization due to frequent setups due to
change in product varieties
• Multi-skilled workforce required or more frequent training
required.
Typical types of industries
• Industries engaged in producing customized

products – boiler components, turbine
components, Heat Exchangers components,
vanity vans, customized furniture, prototype
components, Pathology / QC Laboratories etc

3. Product Layout
• Used when one product or a variant is to be manufactured in

large quantities.
• The sequence of operations is fixed and hence the machines
are arranged in the same sequence.
• Use of SPMs and MHEs are possible.
• Productivity and utilization of machines is high
• Reduced material handling times and virtual elimination of
WIP leading to shorter Manufacturing Lead Times

Advantages of Product Layout
• Flow of work is fixed and streamlined

• Reduced flow and movements – low handling costs
• Improved coordination between machines
• Reduced MLT and steady production
• Negligible WIP
• Better incentives for workers to improve productivity
• Reduced inspection
• Reduced congestion and optimal use of floor space
• Minimum setup time
• Simplified production control
Disadvantages
• High investment in machinery and equipment

• Special facilities may be required
• Rigid layout – can not be respond to changes in product
design / technological changes
• Difficult to expand the line – requires complete re-plan
• Fluctuations in production quantities can render the line
inefficient and increase in manufacturing costs
• Breakdown of any machine can halt the complete line.

Typical Industries
• Automobile assembly lines, home appliances

industries, food and beverage industries, all
Chemical / Pharma / Oil & gas companies etc.

4. Combination Layout
• (Repetitive Focus in your PPC course.)

• It is a combination of Process layout and Product layout.
• Incorporates the benefits of both layouts
• Able to cater to a small variety of products (with variants)
with similar operations.
• Most preferred when few high cost machinery has to have
higher utilization.
• Degree of flexibility depends upon the key machines that are
shareable between different product lines.

Typical Industries
• Automotive assembly line with few

customized components which are assembled
in house.
• High speed packaging machine shared
between different product lines

5. GT Cell
• Useful when parts can be classified into part families

• Each cell consists of machines that can manufacture parts
belonging to few related part families only.
• Each cell can be tooled according to the part families it is
expected to handle. (Jigs / Fixtures / MHS / Tools)
• The cell will have a product layout and the routing of parts
depends upon the operation that are required; some
machines may be skipped if no operations are required to be
performed on those machines.
• Provides ease of handling restricted variety of products using
a product layout.
Advantage of GT Cell Layout
• Reduced delay in MLT and WIP inventory

• Reduced setups and MH costs
• Improved utilization of machines, floor space and storage
• Simplified production planning and control
• Faster generation of route sheets – from templates in file
• Reduced inspection and quality control

Typical Industries
• Automotive ancillary units catering to a fixed

set of components
• Industries planning to upgrade from Process
Layout.

Another classification of layout
In addition to the layouts covered earlier,

additional layout types have been defined to
address industries engaged in material
movements.
• Office Layout https://www.youtube.com/watch?v=nwditSsaN6U
• Warehouse Layout -
https://www.youtube.com/watch?v=i6H7nfHjHtY
• Distribution Centre Layout – (fig in next slide)

• Retail Layout -https://www.youtube.com/watch?v=K_VEKoLcNh8
P-Q Chart
• Chart used to simplify selection of type of layout based on the

production quantity and product variety.
• It is a ordered frequency chart representing the product
variety Vs product quantity.
• It is a simplified way of identifying the type of layout that is
suitable for a given number of products and the volume of
production required.
• A better method would be to use the Break Even Analysis.

P-Q chart

Break Even Analysis

Wrapup
• Studied different types of layouts – Fixed,

Process, Product, Combination & GT Cell.
• Advantages and disadvantages of each layouts
were analyzed
• P – Q chart to identify type of layout suitable
• BEA for better clarity of layout decision

Q&A

ETZC 424 – L 4

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Procedure for Plant Layout

Recap – L3
• Types of layouts
• Advantages / disadvantages of each type
• P – Q chart
• Break Even Analysis
• FMS

Basic Steps in Layout Procedure
1. Procure basic data

2. Product Analysis and design of production process
3. Make or buy parts decision
4. Calculation for equipment required
5. Accumulate layout data
6. Sketch plot plan
7. Plan general flow pattern
8. Consider general material handling plan
9. Plan individual work station
10. Selection of specific material handling equipment
11. Coordinate group of related operations / individual operation

12. Construct flow diagram for production centers
13. Plan and locate services and auxiliary activities
14. Determine the space requirements
15. Allocate activity area to total space / plot plan
16. Plan the building around the layout, consider building type or
fit the layout in the existing building
17. Construct the master layout / visualize the layout
18. Solicitate the opinions and suggestions of those involved in
the process

19. Develop alternative layouts, evaluate, adjust and select the

best layout with appropriate personnel
20. Check the final layout
21. Obtain official approval
22. Install the layout
23. Follow-up implementation of layout

1. Procure basic data
• About products / materials / manufacturing processes

• Existing machines and equipment
• Production schedule
• Existing personnel, material storage and handling equipment
• Existing plant services / building and ground
• Existing layout
This data needs to be gathered either from our own plants or

from various govt./ competitors/ consultants etc.

2. Product analysis and design of
production process
• Product Analysis: Determine the operations necessary for the

production of each part by breaking the product into
subassemblies and individual parts.
• Design Production Process: Determine the processes by which
materials are to be converted into desired finish product.
– Planning the operations to process R/m to finished part
– Decide sequence of operations
– Select machines and equipment
– Procure production standards
– Prepare route sheets or operations process chart

• Routing: Determining the machines and equipment the
product has to pass through during the transformation.
Factors for selection of machine are
– Kind of operation / quality and degree of precision to be attained
– Volume of production
– Available equipment and machinery from excess plant capacity
– Production rates by various machine units
– Attainment and maintenance of balanced capacity in various machine
units and operations
– Initial cost / maintenance cost / operating cost
– Space requirement / reliability / availability
– Anticipated period before obsolescence / ease of replacement

3. Make or Buy parts decision
• Deciding what parts are to be made in-house and what parts

to buy from vendors.
• Comparison of cost of producing parts in plant Vs price of
acquiring from outside vendor.
• Reliability of supplier / quality / delivery by vendor
• Healthy competition among vendors – availability of other
vendors
• Policy of management – investment in plant and machinery
• Core competency and proprietary technology
• Capacity and demand forecast

4. Calculation of equipment
requirements
• Production demand (yearly / Monthly)

• Scrap estimate
• Standard time for all operations
• Machine utilizing factors
• Number of working days
• Number of shifts
• Number of setups and setup times for each operation

5. Accumulate layout data
Additional data required

• Machine data cards,
• Machine load charts
• Templates of equipment
This data is provided by OEM

6. Sketch plot plan
• It is the diagrammatic representation of building outline

showing the location of the property and location of external
transportation facilities.
• Plan needs to be properly oriented on the property to take
advantage of favourable sun, wind and weather conditions as
well as existing or planned transportation facilities.

7. Plan general flow pattern
• Plan the movement of raw material and product flow in a

direct path.
• Flow to be planned to ensure minimal movement and
expenditure of time and money
• Flow types
– Straight line
– Serpentine flow or zig – zag
– U –shaped
– Circular flow
– Odd angle flow

Straight Line flow
Serpentine flow

U - Shaped
Load
Station
Un-Load
Station

Circular flow WS1 – Load / Unload Station
WS8 WS2
WS7 WS3
WS6 WS4
WS5
8. Consider general material
handling plan
• Consider and decide the methods to be used for handling

materials and products
• Must cover all the activities necessary for handling materials
from unloading of materials from suppliers – actual
production process – loading of finished goods for customers.
• Must include manual and mechanical methods and
equipment.

9. Plan individual work place / area
• Work area is the area occupied by a machine or a group of

machines which an operator is supposed to work with.
• It is the smallest individual area unit in the layout.
• Need to consider inter-relationship between the machine,
operator, auxiliary equipment.
• Proper access to the MH equipment to be included in the area
• The area to be designed keeping mind the general flow
pattern and orientation of machine to facilitate the smooth
flow.

10. Selection of Specific MHE
• Select the specific MHE that can perform the handling of

materials at each work areas.
• Must be in sync with the overall MH design and flow pattern
• Use of manual or powered MHE depends upon the volume of
movement, frequency, distance to be moved and the physical
properties.
• High frequency and high volume movements generally need
automated systems to ensure timely and consistent delivery.

11. Co-ordinate groups of related
operations
• Study the inter-relationship of individual operations or a

group of operations
• Will provide idea about flow of material from each operation
and how it impacts the operation in other machines
• Need to sync with the planned shop-floor flow pattern and
identified MHEs
• Layout planning chart – similar to flow process chart
represents the sequential placement or ordering of work
areas that align with the flow pattern planned.
• Useful function to point out any omissions in planning or
effective integration of operations.
12. Construction of flow diagram
for production centers
• Some of the activities in this category are generally covered in

the “Plan individual work place or area”.
• The area should include all the auxiliary equipment areas
included.
• Flow of material in and out must be marked on the
production center diagram drawn to scale.
• This will be later used to decide the layout in the site map.

13. Plan and locate services and
auxiliary activities
• Planning of various equipment and services that support the

production operations. (positive activities)
• Equipment that product dust, odor, pollution, noise etc must
be kept a bit far from the working areas. (negative activities)
• A relationship chart provides a logical solution to these
activities inter-relationship and guide in positioning them with
respect to each other.

14. Determine the space required
• Estimation of total space that is required for

production center, storage of raw materials, finished
goods, consumables etc
• Sum of square feet for each production center and
equipment, work area for operators, maintenance
services, material storage etc will give an estimate of
total space required.
• About 30 – 40 % space of estimate is earmarked for
aisle space (for movement of men and material)

15. Allocate activity area to total
plot plan
• After flow diagrams are made for individual production

centers, it is necessary to fit them into the building outlay.
• Total space requirement worksheet provides an area template
for each activity.
• These templates are made to a specific scale to be arranged
as per the relationship between them.
• Orientation of various area templates without disturbing the
relationship between them are arranged within the floor plan
to get the area allocation diagram

16. Plan building around the layout
• In case of new layout design, the area allocation diagram is

used to plan a building around it.
• A simple shed or a multi-story building can be designed based
on the requirement and necessity
• In case of a existing building, it introduces constraints in the
form of column and pre-defined floor plan and hence the
layout needs to be designed keeping these in mind.

17. Construct master layout
• It can be prepared using templates and models for better

representation.
• Helps to analyze possible alternatives in layouts and eliminate
potential errors in layout before they are installed.
• Can be used to represent the design in more graphical way so
that it is more easy to understand.
• Use of 2D or 3D representation can be done depending upon
the targeted audience.

18. Solicitate opinions and
suggestions
• Show the model to various stake holders and team

members and seek their opinion and suggestions.
• A unbiased opinion may sometimes prove beneficial
• Support of few stake holders in implementing the
layout design can be crucial.

19. Develop and evaluate
alternative layouts
• Different layout options must be analyzed to find out

the best alternative.
• It must be able to meet the objectives set during the
start of layout design and must provide for the
lowest operating costs

20. Check the final layout
• A final recheck of design data and analysis is a must

before finalizing the layout.
• Last minute updates in data can be used to verify the
soundness of design.

21. Obtain official approval
• A presentation to the higher authorities as to the

benefits of the layout has to be done to seek their
approval.
• The top management may deliberate on the various
details used in the designs to check the validity
under conditions based on their strategic plans.

22. Installation of layout
• After the approval of management, the layout needs

to be installed.
• The installation has to be strictly as per the design
and must be done by well experienced personnel.
• Detailed drawings of shop floor, civil plans, power
lines, Pipes and ducts plan etc must be prepared and
supplied.
• This takes the form of project and hence its progress
must be tracked using Gantt charts and PERT/CPM.

23. Follow-up the implementation
• The layout design is not a one-off activity

• It needs to be reviewed and analyzed periodically to
ensure that the objectives are met.
• Changes in technologies and product design will also
prompt for the review of layouts.

Recap
• Analyzed the various steps in a layout design

process.
• Some of the steps will be redundant in case of
designing layout in an existing plant.
• Layout design is an iterative process and must
be reviewed periodically to ensure compliance
with the objectives to provide low cost
operations.
ETZC 424 – L 5

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Plant Services and Auxiliary

Departments
Introduction
• In addition to the production, there are other activities and

services that are equally important for the efficient working of
any plant.
• They do not involve with the flow of material but are essential
for running the plant, like
– Receiving, Storage, Warehousing, and Shipping
– Tool room, Maintenance and Material handling
– Plant utilities like electricity, water, steam, gas and compressed air, and
fire protection.
– Personnel facility related with the needs of people.
– Administrative services consisting of office area and related activities.

1. Receiving
Concerned with orderly receipt of materials and supplies coming

into the factory and their proper storage and disposition. Size
and design depends to a large extent on
– Production rate and capacity
– Plant site and layout
– Type of product, receiving lot sizes
– General characteristics of goods received
– Physical characteristics like dimension, size, shape, weight etc
– Quantity, frequency and schedule
– Unloading methods and time required
– Inspection requirements
– Seasonal limitations, Weather conditions
– Market fluctuations.

Fundamental considerations in
designing a receiving department
• Type of carrier
• Climate / Weather
• Mechanisation
• Inspection
• Decentralization
• Clear Visibility

• Receiving is also the first point of contact in quality control
and hence it is essential that receiving department be so
located that materials and purchased parts pass thru this
department.
• The Receiving must be properly enclosed and separated from
the normal flow of materials so that no part leaves the
receiving without proper QC check
• Also, the layout and processes must ensure that the material
is segregated as QC pass or fail in shortest possible time, so
that the items that fail the QC can be kept aside for disposal
or replacements, as the case may be.

2. Storage
• Reservoirs to keep the production line adequately supplied

with raw and semi-finished materials.
• Safeguard materials and supplies from pilferage, unauthorized
use and deterioration due to weather, moisture, heat,
improper handling and obsolescence.
• Material control function by checking their quality, quantity
and types against purchase orders.

Functions of a store room
• Protection requirements for materials.
• Handling facilities
• Inventory control
• Centralization
• Stores issues
• Control point

Factors for determining the storage requirement
1. Basic considerations – size of item, size of container, number
of pieces in container, frequency of issue.
2. Additional considerations – market availability, price
fluctuations, max – min quantities to be stored, type-size-
capacity of bins / racks / shelves, degree of protection
required, MH needs, inventory control policy (including
verification methods)
3. Production capacity

3. Warehousing
Concerned with orderly storage and issuing of finished goods

and products
Functions of Warehousing
– Receiving of finished goods from production
– Orderly and safe storage of goods
– Order picking and packing for dispatch
– Maintaining proper records of stocks.

4. Shipping / Dispatching
• Concerned with disposition of stock selected to fill orders,

packaging the items for shipment and loading them into
carrier for delivery.
• Factors applicable for Receiving apply for Shipping too.

5. Tool Room and Tool Crib
• Storage, maintenance and issue of small tools constitutes a

major plant service.
• Small tools are stored and repaired in the tool crib, which
must be incorporated in the plant layout.
• Centralized crib Vs Chain Crib

Layout for Tool Room
Factors for locating Tool Crib:

– Locate tool crib in the approximate centre of operation, it will
minimize walking time to the crib.
– Design the crib enclosures and binnage to protect the crib stock
– Layout the tool crib so that the crib attendants walk minimum number
of steps for issuing tools a the service window.
– Provision for tool repair equipment for reconditioning of tools quickly
and properly
– Allow sufficient flexibility in design of tool crib for changing conditions
of manufacturing operations.

6. Plant Services
Planning Requirements:
– Should be adequate to meet the demand of production facility, safety
and be economical
– Must be designed in such a manner that the system will not only meet
the present day need but will be adequate to meet the future needs of
production.
– Services must be economical in operations.
– Readily accessible
– Flexible in distribution.
– Proper location
– Grouping of services

Important Plant Services
– Electricity
– Water
– Steam and Heat
– Piping
– Gases and Compressed Air
– Plant Maintenance
– Handling Equipment Storage
– Fire Protection.

7. Employee Services
Facilities catered for employees

– Employment, interview, testing and physical examination, assignment
of job, training and upgrading
– Lockers, washrooms, and toilets
– Food services and drinking water
– Medical services, dispensary and first aid.
– Working conditions – light, AC, fresh air, minimum noise, safety
– Special Services – Banking and loan facilities, consumers’ cooperative
society, trade union activities, insurance programmes, personnel
advisory services, training programmes, adult education, education for
children of employees, recreation facilities, creches, rest rooms,
common meeting rooms. etc

Recap:
• Overview of Plant services

• How each service is planned, typical objectives
• Basic functions of each service and auxiliary service

ETZC 424 – L 6

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Factory Building

Recap L9
• Overview of Plant services

• How each service is planned, typical objectives
• Basic functions of each service and auxiliary service
ETZC424 - PLANT LAYOUT AND DESIGN 3

Factory Building
Factory building is an important reckoning factor in

plant layout. Building of adequate dimensions and
suitable design has to be constructed or acquired for
installation of the plant intended to carry out the
planned manufacturing process.
“The factory building is the primary tool to carry on

production and into which all other production tools
and mechanisms must fit.”

Factory Building
• Primary purpose is to provide protection to plant

facilities, man, material and machines
• Building designs contribute to effectiveness of layout
• More significant if the layout is to be arranged in an
already existing building
• Greater freedom in planning if the building were to
be build around a newly designed layout.

The basic objectives of building design
for factory building
• To house the business activities and manufacturing

operations in the well laid-out premises and ensure
their efficient and economical working of the plant
• Protection of the plant, equipment etc. against hazards
of theft, fire and perverse climate
• Conservation of land area through multi-storey
buildings
• Supporting overhead equipment like cranes, water
tanks, mono-rails, beltlines, pulleys, etc.
• Providing amenities or service facilities to the
employees
Factors which influence factory
building
1. Type of Industry
2. Product
4. Material Handling
5. Storage Requirements
6. Plant Services
7. Flexibility
8. Provision for Expansion

1. Type of Industry
• Defines the type of equipment and MH systems that need to

be used.
• Defines the type of protection required for equipment,
materials, human resource etc
• Defines the level of centralized control necessary for
monitoring.

2. Product
• Defines the type of protection needed to be

provided by building. Ex. Aluminium and non-
corrosive materials may be stored in open while steel
products need to be stored indoors.
• Based on whether the product is semi-finished or
finished, a different kind of requirement is expected
from a factory building. (finished goods need much
more protection from environment and accidental
damage)

• Some of the machinery may require special facilities

to be present for optimal working eg. High ceilings,
heavy girders for support, strong foundations, more
work-volume etc.

4. Material Handling
• Material Handling equipment may demand heavy

pillars for cranes, floor space for manoeuvrability etc.
• Loading and unloading docks, ramps, rail road
sidings, overhead conveyors, chutes need to be
planned.
• Elevators must be of sufficient capacity to handle
movement of men and materials; dimensions
corresponding to the size of product moved – in case
of multi-storied buildings.

5. Storage Requirements
• Storages are built into the buildings for raw materials

and finished goods depending upon the type of
material.
• Volume of production defines the size and type of
storage to be planned.
• Silos, bulk storage bins or pits that are frequently
planned to be part of the building.

6. Plant Services
• Methods to provide plant services depends on the

building design.
• Lighting, ventilation depend upon the type and
height of roof and the direction of sunlight, wind etc.
• Temperature variations during different seasons and
requirement of air conditioning etc to maintain
specific temperature, must be decided based on the
design of building.

7. Flexibility
• Building must be designed to be keeping the future

needs in mind.
• Design must be based on flexibility and adaptability
ie have provisions to permit reorganization and
incorporate new features with time and
advancements.
• It is expected that the building be designed after
production planning, equipment sequence and
layout has been finalized.
• The planned building design must be such that any
similar type of industry can be established.
8. Provision for expansion
• Prospects for doubling of production must be considered

when designing buildings such that planned expansions may
be possible in a systematic pattern.
• Additional facilities and departments need to be located
within the space available in the site in an orderly fashion
based on the changes in demand and requirement of capacity.
• Normally, the site is selected with a factor of 3 times the
present capacity, so as to meet expansion needs of future.
• In case of multi-storied building, additional expansion may be
undertaken by adding another floor with the same carpet
area.

Types of expansions
1. Mirror Image expansion

2. Straight line flow expansion
3. T Flow expansion
4. U Flow expansion
5. C Flow expansion

Building shapes and planned
expansions

Types of Factory Buildings
1. Single Storey Building

2. High Bay and Monitor Type Buildings
3. Multi-Storey Buildings
4. Buildings of Special Types

1. Single Storey Building
Single storey factory buildings with different

roof structures such as flat, bow string, etc.

Single storey factory types

Advantages of Single Storey
Building
• Easy to expand
• Greater flexibility in layout
• Natural light and ventilation
• Foundations required to be made light
• Less time to erect
• Material handling costs are lower
• Ease of supervision and control
• Less mechanical vibrations due to heavy machinery

• Easy to isolate obnoxious or hazardous areas
• No space lost due to elevators or stairs
• Building cost is less
• Permits higher ceilings
• Needs few columns
• Risk of serious fire damage is less
• Lower operating costs
• Maintenance is easy

Disadvantage of Single Storey
Buildings
• Do not make effective use of land

• More area of land required compared to multi-
storied buildings
• Layout is not compact
• Gravity mode of material movement can not be
employed
• Valuable production space is occupied by office and
stores.

2. High bay and monitor type
buildings
They are basically single storey buildings. For a

given floor space, they provide maximum
overhead space. Large overhead space can be
utilised for operating cranes. Natural ventilation
and natural illumination are the main
advantages for these types of factory buildings.
Foundry and steel mill buildings are generally of
monitor or high bay type.

3. Multi-Storey Buildings
Advantages:
• Possess distinct material handling advantages where
goods can be moved by gravity
• Provide maximum operating floor space per square
metre of land
• Involves lower site cost for production area
• Needs less land and more efficient use of land
• More compact layout and lower heating cost
• Top stories may be used for light stores and offices
Disadvantages
• MH is expensive for bulky materials
• More time for persons and materials in transit between
floors
• Stairways, elevators etc reduce effective production area,
hence increases cost per sq mtr of usable space
• More the number of stories, higher is the cost of
foundation and more space for supporting columns
• Poor natural illumination
• Changes in width and length of upper floors is not
possible.
• Maintenance cost is relatively higher.
4. Buildings of Special Types
Special type buildings may be a combination of

the three types discussed above.
A special type building may be designed to

accommodate a particular process. Such
buildings are inflexible. They become obsolete,
once the process changes.

Types of Building Construction
• Wood Frame Construction

• Brick Construction
• Steel frame Construction
• Reinforced Concrete Construction
• Precast Concrete Construction

Types of Roofing
• Flat Roofs – More cost effective, quicker and easier to
install. Materials include rubber rolls, EPDM, PVC, TPO,
bitumen, and modified bitumen. However flat roofs are
more prone to standing water and material
degradation.
• Low Sloped Roofs – Allows for better water runoff
which means less maintenance calls. Safer and cheaper
than pitched roofs and can use the same materials.
Heavy snows can weigh down and potentially cause
damage.
• Pitched Roofs – Best for water and snow runoff, but
most dangerous for roofing crews. Pitched roof types
generally have costlier maintenance and repair costs.
Types of roofing
• Metal Retrofit Roofs – Simple, cost-effective

method of re-roofing a metal roof with a
membrane system. Reuses your current roof
structure and insulation making it
environmentally friendly and structurally sound.
Can greatly extend the life of a damaged roof.
• PVC Membrane Roofs – The most popular and
time-tested roofing material available. PVC
roofing membranes are more durable, fire
resistant and puncture resistant than most other
available membranes.
Types of roofing
TPO Membrane Roofs – Light color, good for reflecting

heat away from the building. Colors come in white, tan,
gray, green, red, and blue. Seams are sealed with hot-
air gun. However, easier to puncture and prone to
shrinkage. (TPO - Thermoplastic polyolefin)
EPDM Membrane Roofs – Darker roofs, better suited for
cooler climates. Made of a highly durable rubber providing
protection from the weather. Seams are sealed with adhesives
/ seam tape. Also prone to holes and shrinkage. (EPDM -
Ethylene Propylene Diene Methylene)

Layout in an existing building
Vs
Layout for new building

Recap
• Factors depending on Factory Building

• Impact of various factors with respect to the
Factory building
• Comparison of layouts in an existing building
to layout for a new building
• Types of building and roofs (roofing material)

ETZC 424 – L 13

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Improving and Revising

Existing Layout
Recap
• Factory building – features, requirements, factors affecting

building, New building Vs existing building
• Material Handling Equipment - given as self study.

Improving and revising existing
layouts
• Layouts are designed with due care and vision to meet the
requirements of new technologies, predicted product
changes, increased product volume and based on strategic
goals of the organization.
• In spite of all this, we might sometimes need to relook at the
layout designs, evaluate the factors and plan for the
improvements.
• Every industry has to undertake this exercise periodically to be
competitive and sustain.

Reasons for Redesign of Layouts
1. Expansion of capacity
2. Shrinkage in output
3. Change in product design
4. Replacement of equipment
5. Entire department moved to new location
6. Poor working environment
7. Frequent accidents
8. Reduce material handling
9. Reduce costs
1. Expansion of capacity
• Normally taken up when the volume of production

needs to be ramped up due to high demand
forecasts / trends.
• Necessitates changes in Production Processes which
impacts the new machines, materials, tools etc which
impact the layout design.
• Depends on the space available and the topography
of the land – impacts the type of layout – straight
line, U type, L type etc.

2. Shrinkage in output
• Step taken up when the demand forecast is not

encouraging (product is in decline stage in PLC).
• Objective is to divert the available resources to those
products which are more revenue generators.
• Men, machine and materials may be diverted or
physically moved into new layouts.
• Sometimes a new layout is customized for a newly
introduced product.

3. Change in product design
• Most common reason for layout design changes.

• Product design goes thru changes based on customer
expectations and to provide boost to the product life.
• Sometimes, these changes many necessitate
introduction of new machines, tools etc
• Some of the earlier processes may become
redundant or quantum of workload may change.
• This requires machines to be physically re-organized.

4. Replacement of equipment
• Another common reason for layout improvement.

• As the machines become obsolete, they need to be
replaced.
• It is a practice to replace the machines with new and
better performance machines – which could take
more space, create imbalance in production rates
etc.
• May create a scenario where other machines too
may need a bit of upgrading to match the flow rates.

5. Entire department moved to new
location
• This could be due to changes in the Process Design.

• Some of the steps in the manufacturing process may
not be relevant in the new process.
• This could result in physical reorganization of
departments / shops to maintain a proper direction
of material flow or minimize the distance to be
travelled.
• Inspection, Heat Treatment plants, Finished goods
warehouses for each product type etc are some
examples.
6. Poor working environment
• Working environment where proper lighting,

ventilation or screening from harmful working
conditions are not properly designed.
• Layout needs to be redesigned to make optimal use
of wind direction to create natural ventilation,
windows / roofs to get illumination etc.
• Orientation of machines, positioning of tool cribs,
space for operator movements, path for personnel
movements etc are major areas of concern in this
factor.
7. Frequent accidents
• Incidents of frequent accidents reflects poor

planning of movement & space for men and
materials, poor layout of tool cribs.
• Improper traffic planning and management,
obstruction to free flow of men and material
handling systems
• Non-ergonomic working conditions of operators at
workstations also result in accidents.
• Major revamp of layout is needed to address this.

8. Reduce material handling
• Objective of any layout design is to minimize the

amount of material handling both in terms of time,
frequency and distance.
• A good layout will provide the least amount of
distance to be travelled by the MHS. A good process
design will ensure optimal frequency of movement
of MHS.
• This could be due to unplanned installation of new
machines without regard to the flow pattern or
capacity of MHS.
9. Reduce costs
• The principle objective of having a good layout is that

it ensures the least manufacturing cost by reducing
the non-value adding activities.
• Cost of manufacturing includes processing, MH, Raw
Material and consumables.
• The manufacturing cost increase due to more WIP,
more time spent in transportation, improper process
design, improper process planning and scheduling of
workstations, breakdowns or poor maintenance,
poor workmanship and defective materials.
Indicators for need of re-layout
1. Low productivity
2. Idle or unused capacity
3. Bottlenecks – improper capacity balance along line
4. High costs, no provision for expansion, delays in process
5. Backtracking, frequent rework, excessive movement of
manpower,
6. No control over process and inventories (WIP)
7. Poor MHS, inadequate use of cubic space, cluttered
pathways, more temporary storages on floor.
8. Low supervision, frequent breakdown of machines

Procedure of Layout revision
1. Determine the objectives to be achieved

2. Compile the layout drawings of existing plant, equipment,
building and establish layout limits
3. Cost study of existing and new product(s)
4. Analyze all data for present layout, study current problem
and uncover weaknesses and inefficiencies with the help of
1. Flow diagram / flow process chart / operations analysis
2. Left and right hand chart / man machine charts
3. Overall analysis of MHS / service activities / ancillary departments
4. Investigate cost reduction sources

Procedure of Layout revision -
Contd.
5. Examine the feasibility of change

6. Development of an improved and revised layout that attains
a. Improved flow diagram / process chart
b. Provides flexibility in output and need for future expansion
c. Improved productivity / reduced processing
d. Prepare final detailed drawing of revised layout
7. Installation of new or improved method
a. Prepare a final detailed drawing of revised layout
b. Install new methods

Recap:
• Reasons to revise layouts

• Indicators for poor layout designs
• Revising layout procedure

ETZC 424 – L 16

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Evaluation of Location

Recap
• Analyzed the different methods of evaluating a layout.

1. Pilot Plan
2. Cost comparison
3. Man – hour evaluation
4. Space Evaluation
5. Factor analysis
6. Ranking
7. Value Rating
8. Pros & Cons
9. Tally of gains and losses
10. Apply an audit
11. Evaluation Check sheet
12. Efficiency indices
Methods for evaluation of location
Quantitative Methods
1. Locational BEA
2. Economic / Cost Analysis
3. Median Model
4. Gravity Model
5. Multi-facility Location
6. Transportation Model

Qualitative Methods
Factor Rating
1. Equal weight method
2. Variable weight method
3. Weight cum rating method
4. Composite measure method

1. Locational Break Even Analysis
• Economic comparison of locational alternatives using the

fixed cost and variable costs for each location
• Fixed costs consists of basic investment in land, machines and
infrastructure, insurance etc.
• Variable cost consists of operational costs, depreciation and
overheads distributed over the volume of production.
• Sum of fixed costs and variable costs for each location is
calculated.
• The location with the least sum value is considered to be best.

Fixed Variable
cost per cost per Volume of Total
Location year unit (Rs) production cost
A 250000 11 8000 338000
B 100000 30 8000 340000
C 150000 22 8000 326000
D 200000 35 8000 480000

Chart Title
700000
600000
500000
400000
300000
200000
100000
0
0 2000 4000 6000 8000 10000 12000
A B C D

Example 2
Five prospective Locations are identified by HUL for future. It

was decided to analyse these using the BEA to identify the
optimum production volume for each location. Use graphical
approach to arrive at the production volume.
Location Fixed cost (₹) Variable cost (₹)
A 1500000 17
B 4500000 8
C 1200000 20
D 5500000 6
E 4000000 12

Volume A B C D E
30000 2010000 4740000 1800000 5680000 4360000
60000 2520000 4980000 2400000 5860000 4720000
90000 3030000 5220000 3000000 6040000 5080000
120000 3540000 5460000 3600000 6220000 5440000
150000 4050000 5700000 4200000 6400000 5800000
180000 4560000 5940000 4800000 6580000 6160000
210000 5070000 6180000 5400000 6760000 6520000
240000 5580000 6420000 6000000 6940000 6880000
270000 6090000 6660000 6600000 7120000 7240000
300000 6600000 6900000 7200000 7300000 7600000
330000 7110000 7140000 7800000 7480000 7960000
360000 7620000 7380000 8400000 7660000 8320000
390000 8130000 7620000 9000000 7840000 8680000
420000 8640000 7860000 9600000 8020000 9040000
450000 9150000 8100000 10200000 8200000 9400000
480000 9660000 8340000 10800000 8380000 9760000
510000 10170000 8580000 11400000 8560000 10120000
540000 10680000 8820000 12000000 8740000 10480000
570000 11190000 9060000 12600000 8920000 10840000
600000 11700000 9300000 13200000 9100000 11200000

Chart Title
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
30000 60000 90000 120000 150000 180000 210000 240000 270000 300000 330000 360000 390000 420000 450000 480000 510000 540000 570000 600000
Series1 Series2 Series3 Series4 Series5

Economic / Cost Analysis
• Analysis of operating a plant at each location for

present and future periods is done.
• Estimates of future costs for various factors are
forecast for analysis.

Cost Element X Y Z
1st yr 5th yr 10th yr 1st yr 5th yr 10th yr 1st yr 5th yr 10th yr
Transportation In 18.50 22.90 28.40 17.40 21.50 26.80 16.40 19.90 24.60
Transportation Out 6.10 7.60 10.20 6.00 7.00 10.00 6.10 7.60 10.10
Labour 14.70 19.40 26.20 18.60 22.80 30.50 21.50 25.40 33.90
Raw material 30.30 39.40 57.10 2.50 39.10 56.30 28.90 38.60 52.20
Supplies 4.20 4.50 5.10 4.40 4.90 5.90 4.60 4.90 5.20
Utilities 6.00 9.20 18.50 8.40 12.90 29.20 10.10 16.30 32.10
Various Overheads 5.90 6.80 7.50 6.10 7.20 8.20 6.00 7.60 8.60
Fixed overheads 9.60 10.50 14.20 10.20 11.60 14.90 10.40 12.30 15.60
Total Op Cost
(*1000) 95.30 120.30 168.00 100.60 127.20 181.80 104.00 132.60 186.00
Projected Volume 1201.00 1489.00 2001.00 1201.00 1489.00 2001.00 1201.00 1489.00 2001.00
Production cost /
Unit 79.40 80.80 84.00 83.80 85.40 90.40 86.60 89.10 99.10
Median Model
• Aims at minimizing the transportation cost between

sources and distribution centres to decide the
optimal location of plant.
• Aims to optimize the Tc = Q * (Ti* Di )
Ti is the transportation cost per unit distance
• Coordinates of sources and distribution centres are
plotted and the quantities supplied from each is
estimated.

90
X Y
80
S1 10 70
70 S2 40 20
D1 50 60
60 D2 70 80
50
40 S/D Q Cost
S1 40 10
30
S2 80 10
20 D1 50 10
D2 90 10
10
0
0 10 20 30 40 50 60 70 80

To find the X coordinate:
Consider horizontal movement and calculate the median of
quantities. Median = 145
Since 145 is very near to X coordinate of S2, the same would be
the X coordinate of new plant.
S1 40 40
S2 80 120
D1 50 170
D2 90 260

To find the Y coordinate:
Consider horizontal movement and calculate the median of
quantities. Median = 150
Since 150 is very near to Y coordinate of D1, the same would be
the Y coordinate of new plant.
S2 80 80
There fore the coordinate of new plant is D1 50 130
40, 60 S1 40 170
D2 90 260

Gravity method
• Technique to determine the centre of gravity location of a

new facility when the location of suppliers and distributors is
known.
• It uses the Euclidean distance between any two points.
X Y S/D Q Cost
S1 10 70 S1 40 10
S2 40 20 S2 80 10
D1 50 60 D1 50 10
D2 70 80 D2 90 10

(10*40)+(40*80)+(50*50)+(70*90)
X =--------------------------------------------------
(40+80+50+90)

Multi-Facility Location
• The analysis of multi-facility location takes into consideration

the overall effect of adding a new location over the whole
organization in order to minimize the operation costs.
• With the increase in number of locations, there could be
increase in costs in terms of investment in infrastructure and
land but it could also result in reduction in transportation
costs.
• Proper analysis is to be done to determine the number of
locations that should be established so as to minimize the net
impact on the organization in terms of transportation costs.

Transportation model
• Decides
– Where should the facilities be located
– What should be the allocation of demand to various facilities?
• The model uses cost comparison to determine the
combinations of demand loads based on the transportation
costs from one facility to other.
• The combination giving the least cost is selected as the
optimal.

Qualitative methods
• Qualitative factors are converted into quantifiable

values to compare different locations.
• Various methods used here use rating, weights to
give relative values for comparison purpose.

Equal Weight Method
• This method uses rating of non-tangible factors for each

location.
• Sum of all rating for each locations are calculated.
• The location giving higher values is considered to be better
location.

Variable weights method
• Instead of having uniform weights as in previous method, this

method gives weights in accordance to the importance of the
factor.
• A range of values for each factor are given and accordingly
each location is rated.
• Sum of rating for each location is calculated and the location
with highest value is considered to be optimal.

Weight cum Rating method
• Each factor is given a fixed weightage based on its

importance.
• Each location is rated for each of the factors
considered.
• Product of weight and the rating for each factor is
calculated and sum of all such products is calculated
for every location.
• The location with highest value is considered to be
the best location.

Composite measure method
• Similar to the weight cum rating method.

• Few constraints too can be included in the analysis
like having minimum value for any factor to be
considered valid.
• It is a much more comprehensive analysis as
different classes of factors can be analyzed in one go.
• The location with highest value and meeting the
constraints condition is considered to be the optimal
location.

Recap
• Different quantitative and qualitative methods

to evaluate different locations.

ETZC 424 – L 5

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Techniques and Tools for

Planning Layouts - 1
What are the techniques to analyze
layouts?
Conventional
which have been in use for many years, are relatively easy to
use, are primarily graphical and are on the whole best tools for
their intended purpose.
Quantitative
which make use of sophisticated mathematical and statistical
methods, and are commonly classified as Operations Research
techniques, frequently making use of computers to carry out
complex calculations necessary.

• Conventional techniques often require a lot of detail work to
make an accurate record of all the moves in all processes.
• They also require the gathering of many different kinds of
data on several aspects such as: route over which the move is
made, Volume moved, distance travelled, frequency of move,
rate at which items travel and cost of each move.
• The total flow most likely involves a large number of moves,
not just one or two. These moves may take material thru
complex, integrated handling cycles, over a long period of
time.

Conventional Techniques used for
analysis of layouts
1 Assembly Chart 6 Man-Machine Chart

2 Operations Process Ch 7 Two handed Proc Chart
3 Multi Product Proc Ch 8 String Diagram
4 Flow Process Chart 9 Travel Chart
5 Flow Diagram

1. Assembly Chart
• The assembly chart is a graphical representation of sequence

in which parts and sub-assemblies flow into the assembly of a
product.
• Assembly Chart shows in a easily understandable way
– What components make up the product
– How the parts go together
– What parts make up each sub assembly
– The flow of parts into assembly
– The relationship between parts and subassemblies
– The overall picture of assembly process
– The order in which the parts go together
– An initial impression of the overall material flow pattern.

Construction of Assembly Chart
1. Using the parts list, Bill of Materials or equivalent and the

routing for assembly process, determine what would be the
last operation in the production or assembly of product.
Designate it with a circle in the lower right corner of the
paper, and briefly describe the operation at the right
alongside the circle.
2. Draw a horizontal line from circle towards left, placing the
circle at the end and indicating each component (name, part
number, pieces / assembly) assembled at the operation
recorded. Components should be listed in order of assembly,
the last item at the bottom.

3. When subassemblies or sub-subassemblies are encountered,
run the item lines only partway to the left and terminate
them with a circle to represent the subassembly operations.
Then continue to the left until the sub assembly is resolved
into its component parts. Assemblies can be numbered after
the assembly chart is completed. The line representing an
individual part should again be carried to the left side of
paper and terminated with a circle in which part number
may be entered.

4. When the last assembly operation and its components are
completely recorded, draw a short vertical line from the top
of circle and enter a second circle to represent next-to-last
assembly operation. Indicate the components to the left as
in Step 2 and 3.
5. Continue until the product has been disassembled and all
the components have been recorded at the left from bottom
to top.
6. Check the Chart against the BOM to be sure no component
has been omitted. Enter assembly and subassembly
operation numbers in the circles. When completed, the
items listed on the left should be in the order in which they
are actually used or assembled for the product.

Assembly chart animation (partial)
N-2 Step
Type of operation
N-1 Step
Type of operation Nth Step

Exercise – Assembly Chart
1. Draw an assembly chart for a motor

2. Draw an assembly chart for an industrial gear
box (VR / HR / Combination)

Exercise 2

2. Operation Process Chart
• This technique is the first to consider individual operations on

each part or assembly.
• It provides much more accurate picture of the production
flow pattern than assembly chart.
• It extends the assembly chart by adding each and every
operation to the graphical representation of preliminary flow
pattern developed previously.

Advantages and uses of Operations
Process Chart
1. Combines production routing and assembly chart for a more

complete presentation of information
2. Shows operations to be performed on each part.
3. Shows sequence of operations on each part
4. Shows order of part fabrication and assembly
5. Shows relative complexity of part fabrication
6. Shows relationship between parts
7. Indicates relative length of fabrication lines and space
required
8. Shows point at which each part enters the process

9. Indicates desirability of subassemblies
10. Distinguishes between purchased and manufactured parts
11. Aids in planning individual workplaces
12. Indicates number of employees required
13. Indicates relative machine, equipment and personnel
concentration
14. Indicates nature of material flow pattern
15. Indicates nature of material handling problem
16. Indicates possible difficulties in production flow
17. Records manufacturing process for presentation to others.

Construction of Operation Process
Chart
1. Choose the part to be charted first. Usually a chart of the

most pleasing appearance will be obtained by selecting the
component on which the greatest number of operations is
performed. If the chart is to be used as a basis for laying out
a progressive assembly line, the part having greatest bulk
and to which smaller parts are assembled should be chosen.
When the component is chosen, start at the lower right
corner of the paper, and record assembly operations as on
the assembly chart. Purchased components are represented
by short lines to the left with part numbers and names.

2. When all assembly and inspection operations on the major part have
been entered, proceed to enter the fabrication operations, in reverse
order. After the first operation has been recorded, a short horizontal
material line is drawn in the upper hand portion of chart, to the right. A
description of the material may be recorded directly above this line. The
description may be as complete as deemed necessary. In order to
identify the part itself, the name and identifying number maybe recorded
directly above the material description.
3. To the right of each operation symbol, a brief description of the
operation is recorded, such as bore, turn, chamfer, or inspect material for
defect etc. Other data that may be recorded are: time allotted for
performing required work, department in which the work is performed,
operator classification, cost centre, machine number or labour cost, to
the right of symbol and below the description of the event.

4. Returning to the assembly operations already recorded,
identify the last part requiring operation on it, draw a
horizontal line to the far left, then up towards the top of the
sheet. Indicate with circles the operations from the
production routings or squares for inspection, in reverse
order, towards the top. At the top, identify each component.
Also enter operation numbers etc from the routing.
5. Continue in this manner until all components have been
charted. All fabricated parts should be along the top, usually
with major component (chassis, base etc) to the right. All
purchased parts should be within the body of the chart.

6. Subassemblies are handled in much the same manner as on
assembly chart, although they may breakout differently with
added information from the routings.
7. Check chart against BOM and all routings to insure that there
are no omissions of parts or operations.
From the Operations Process Chart a definite flow pattern

begins to take shape, a layout will begin to form in the mind of
facility designer.

3. Multi Product Process Chart
It is useful in showing
production relationships
between components of a
product or individual
products, materials, parts,
jobs or activities.
It is particularly helpful in
job-shop operations.

Construction of Multi-Product
Process Chart
1. Down the left side of the sheet of paper, list the

departments, activities, processes, and machines through
which the items or elements must pass. They may be listed
from top to bottom in geographical sequence – as they occur,
or might occur, in the facility OR in as logical a sequence as
possible, all factors considered, as construction of chart is
intended to show the proper arrangement or sequence.
2. Across the top, list the components, products being studied.
For more than 20 – 25 items, divide them into groups of
similar parts and work with groups. The items should be
arranged in a logical order by similarity of operations
needed.
3. From the Production Routings, record the operations on each
item, opposite the proper department, process or machine
and under the proper item, by a circle containing the
operation number from the routing.
4. Connect the circles in sequence, even though back-tracking
may be shown.
5. Study the resulting chart for
a) Back-tracking – indicating possibility of rearranging departments
b) Similarity of “flow patterns” – indicating desirability of processing
parts in the same area, at the same time etc
c) Clues to arrangement that will produce an efficient flow pattern.

Exercise in Multi Product layout
A company has 10 types of machines and is engaged in

manufacturing six types of components. The machines
have been designated as M1, M2 … M10 and the part
types as P1,P2 .. P6. The order of visiting machines for
each part type is given in the table. Kindly suggest an
appropriate technique for Layout Planning. Analyse the
data and suggest the suitable layout for the machines.

P1 P2 P3 P4 P5 P6
M1 6 7 4 7 4 5
M2 3 3 3
M3 6 3 6 3
M4 2 2
M5 1,5 1,5 1 1,5 1
M6 2 2 2 2 4
M7 8 9 6 9 6 7
M8 7 8 5 8 5 6
M9 4 4 4 1
M10 3

4. Process Chart
• Tabular record of the steps in a process

• One of the oldest and most common techniques for planning
and analyzing material flow.
• Requires more knowledge of proposed activity than assembly
chart or operations process chart, as it calls for identification
of move or material handling steps.

Uses of Process Chart
1. Provides a method of recording all steps in a process

2. Forces detailed examination of process
3. Becomes the basis for analyzing the process such as
identifying all moves, stores, delays; pointing out
improvement opportunities; showing distances, equipment,
manpower etc; raising questions about a process.
4. Familiarizes analyst intimately with the process
5. Forms a basis for cost determination
6. Forms a basis for comparison of alternative methods.

Construction of Process Chart
1. Most commonly, a printed form is used, with process

symbols printed in columns at the left.
2. Fill the heading to properly identify the activity under
observation
3. Decide on item to be followed. Only one material, item or
person can be followed at one time on a process chart. If it is
desired to follow several items, use the Flow Process Chart.
(explained as next topic)

4. Decide on the type of information desired, and label the
columns on the right of each type of data to be planned or
analyzed, such as:
a) Distance moved
b) Number of men involved
c) Type of container & Number of pieces handled.
d) Time required
e) Method of handling
f) Frequency of move and time per move
g) Department number
h) Operation number

5. In the first column, on the first line enter the step number
6. Decide on the symbol that best represents the activity at the
very beginning of the process – most likely a store.
7. Insert a small 1 inside the symbol. Each type of symbol is
numbered consecutively to aid in tying in with other charts
and data.
8. In the description column, enter just enough to indicate what
is not told by other columns.
9. Fill in the remaining columns to the right, with pertinent
data, as in step 4.

10. Proceed through the entire process or series of steps, until a
logical or desired end point is reached. Remember, in
selecting symbols and identifying steps, to follow either a
person or an object – not both.
11. Fill in the summary box in the upper hand corner of form
(sometimes given at the bottom)
12. Study the Process Chart for improvements possibilities, and
make a chart of proposed improved method.
13. Use record of moves as a basis for cost determination.

Recap:
• What are the various techniques used for analyzing

layouts
• Studied about Assembly charts, Operations Process
Charts, Multi-product Process Charts and Process
Chart along with steps to construct them.

ETZC 424 – L6

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Techniques and Tools for

Planning Layouts - 2
Recap L5
• What are the various techniques used for analyzing

layouts
• Studied about Assembly charts, Operations Process
Charts, Multi-product Process Charts and Process
Chart along with steps to construct them.

4. Flow Process Chart
• It is a combination of Operations Process Chart and a Process

Chart for each component of the product or assembly
• It presents the most complete graphical representation of the
overall process.

Construction of Flow Process Chart
1. Obtain the Operation Process Chart for the process being

studied.
2. Obtain Process Chart for each component
3. Re-draw the Operations Process Chart, inserting all process
symbols from each Process Chart on the appropriate vertical
line representing each component.
4. Enter any additional desired data alongside symbols such as
description, distance, quantity, time, cost etc.
5. Study the resulting chart for any possible improvement in the
overall process, inter-relationships between operations,
individual processes etc.
5. Flow Diagram
• It is a graphical record of the steps in a process made

on a layout of the area under consideration.
• Represents the flow of men/material in the shop.
• Borrows the flow pattern from the Process chart
• Frequently used as a supplement to the Process
Chart.
• Consolidation of all flow diagrams is used to check
the overall flow pattern at the site / plant.

Flow Diagram for Cement Mfg

Flow Diagram for Tyre Mfg

Construction of a Flow Diagram
1. Obtain a layout of the area involved in the activity

2. Record on the layout, as near the point of occurrence as
possible, the process symbol that best describes each step of
the activity, as with the Process Chart OR if a Process Chart
has been made, transfer the symbols from it to the Flow
Diagram. Proceed step by step to the end of the process.
3. Number the symbols in the same manner as with the Process
Chart to match the Process Chart.
4. Connect the symbols with a line, to show the path travelled
by the object under observation.

5. Study the Flow Diagram, along with the Process Chart for
improvement possibilities
6. Use the chart for explaining the process to others.

6. Man – Machine Chart
• Used to establish relationship between operator and the

machines under his control
• Used when more than one machine is supervised by one
operator.
• Checks the utilization of machine wrt the operator to decide
the number of machines one operator can handle.
• Graphical representation of coordinated activities of man and
machine described in terms of independent work, combined
work and wait.

Problem on Man-Machine Chart
(HW)
A plant is involved in manufacturing parts that are machined on identical machines in
single station mode, ie. one machine is capable of performing all operations required
for producing the part. A team of industrial engineers want to know how many
machines can be controlled independently by the workers. During the observation,
the following data has been gathered. The operation time of machine is 15 mins,
loading time for raw material is 5 mins and unloading time for the finished product is 5
mins.
There are two scenarios - first when both loading and unloading is done by same
worker and; the second is when a different worker does unloading of finished parts
and another worker does the loading of raw material on the machine. Assume that
loading and unloading cannot happen at the same time, only after the part is
unloaded can the loading start. Evaluate both the scenarios - Identify the number of
workers and the number of machines they can control, Develop Man - Machine chart
for each scenario, Calculate the Idle time per cycle for the workers in each scenario,
How is this information helpful in Layout Designing?

7. Two Handed Process Chart
• Most detailed type of flow process chart in which activities of

worker’s hands are recorded in relation to one another.
• The process chart is normally confined to work carried out at
a single place.
• The symbols used in Process Chart are used to represent the
activities except the Inspection which is considered as an
operation.
• Can be applied to a variety of assembly, machining and
clerical jobs.

8. String Diagram
• It is a means of representing element flow on a layout of the

area involved, using string, thread, yarn etc to show the path
of the elements as they move through the area.
• Results in identifying the machines that are visited most
frequently so as to help in decongesting the layouts by re-
arranging the machines of high incidence nearer to eachother.

Case for String Diagram
• A metal worker became fed up

with walking what seemed to
be half-way around the
machine room just to build a
metal box. With help from the
works facilitator, he measured
the distance he traveled to
build one box, using a pin-
board and scale map of his
workshop area, as below. Using
this, he simply moved the
machines into a U-shape. the
result was an easier and faster
process, which also used less
floor space.

• A self-service restaurant team measures the route taken by
customers around the food counters and also identifies the most
popular meals that they are building. They rearrange the counters
and food to enable a logical progression for the most common
meals. They also include complementary and high-margin food in
this line, which helps to increase the profitability of the restaurant.
• A traffic planning department uses a helicopter to spot the routes
taken by a sample of vehicles passing through the town, plotting
the lines on a street map. Common destinations and routes are now
easily identified (along with short-cuts taken through residential
areas). As a result, some roads are widened, others are blocked and
signs erected. The result is a much smoother traffic flow.
• A maintenance team measures the route taken by engineers
making routine checks on key equipment throughout the plant,
plotting it on a site plan. They are then able to plot a much shorter
route to each of the same machines.

Construction of String Diagram
1. Mount the layout on material into which pins, nails, or tacks

can be inserted.
2. Insert pins through the layout and into the backing at each
place an item stops along its path through the operations,
activities and processes; place pin in exact location such as in
machine, on conveyors, in an aisle.
3. Starting with the entry of each item into the area being
analyzed, connect the pins with string, by wrapping it around
each pin, in correct sequence, stopping at the point where
each item ends its travel or leaves the area.

4. Use different colours or combinations of colours to represent
different elements or material. Congested masses of string
indicate areas of probable congestion.
5. If the layout is to scale, the string may be removed,
measured, and converted to distance travelled.

9. Travel Chart
• Tabular record for presenting quantitative data about the

movement of workers, materials between a number of
locations over a given period of time.
• Points out graphically inefficiencies of material handling such
as backtracking and indicates potential bottlenecks.
• Makes it possible to measure how efficient the layout is wrt
material handling.
• Types of Travel Charts – showing distance between
departments, material handling trips per day, material
handling cost per day.

Recap:
Techniques for analyzing plant layouts discussed.

– Flow Process Chart
– Flow Diagram
– Man – Machine Chart
– Two Handed Process Chart
– String Diagram
– Travel Chart

ETZC 424 – L 7

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Quantitative Layout Analysis

Recap – L6
Techniques for analyzing plant layouts discussed.

– Flow Process Chart
– Flow Diagram
– Man – Machine Chart
– Two Handed Process Chart
– String Diagram
– Travel Chart

Techniques for Layout Analysis
1. Minimum Product Travel Method

2. Graphic Method
3. Load Distance Method
4. Cost Matrix Analysis
5. Travel Cost Technique
6. Operation Sequence Analysis

1. Minimum Product Travel Method
• Objective is to select the layout that has the

minimum product travel distance amongst the
alternatives.
• Inter-department distances and the route sheet for
the products is considered to arrive at the total
product travel distance.

Example Problem - Data
Layout 1 Layout 2
8 4 10 2 5 7 1 9 6 3
3 7 1 9 6 4 10 2 5 8
No. of products
Product Departmental Sequence
processing per month
A 1-5-4-10 1000
B 2-6-3-9 2000
C 2-10-1-9 3000
D 1-7-8-10 1000
E 2-5-6-9 2000
F 1-7-4-10 4000

Example Problem - Data
Department
Distance between
Movement
Combination Layout 1 Layout 2
1-5 30 50
1-7 10 10
1-9 10 10
1-10 10 10
2-5 10 10
2-6 20 20
2-10 10 10
3-6 40 10
3-9 30 20
4-5 30 30
4-7 10 10
4-10 10 10
5-6 10 10
6-9 10 10
7-8 20 50
8-10 20 30
Product Departmental Sequence Total Travel
Layout 1 Layout 2
A 1-5-4-10 30+30+10=70 50+30+10=70
B 2-6-3-9 20+40+30=90 20+10+20=50
C 2-10-1-9 10+10+10=30 10+10+10=30
D 1-7-8-10 10+20+20=50 10+50+30=90
E 2-5-6-9 10+10+10=30 10+10+10=30
F 1-7-4-10 10+10+10=30 10+10+10=30

Distance per
Departmental No. of products
Product product Distance per month
Sequence processing per
month Layout 1 Layout 2 Layout 1 Layout 2
A 1-5-4-10 1000 70 70 70000 70000
B 2-6-3-9 2000 90 50 180000 100000
C 2-10-1-9 3000 30 30 90000 90000
D 1-7-8-10 1000 50 90 50000 90000
E 2-5-6-9 2000 30 30 60000 60000
F 1-7-4-10 4000 30 30 120000 120000
Total 570000 530000

2. Graphical Approach
• It is a trail-and-error method of determining the layout

• Based on the number of movements between departments.
• Number of links are calculated from the load summary chart
based on the from to incidence of each department.
• Departments with higher value of links must be placed near to
each other / must be centrally located and other departments
placed around it by trail or error.
• Which ever layout provides the least non-adjacent loading is
preferred.

Steps to solve
1. Determine the number of links and select the

machines/departments that must be placed in the
centre
2. Develop upper triangle matrix. List the movements
and rank them.
3. Develop layout using trail and error method and
determine the non-adjacent loading.
4. Select the layout that gives the lowest non-adjacent
loading.

A B C D E F
A 5 10 15 10
B 15 10 20
C 10 15 20 10 5
D 5 10
E 5 5 5
F 5
Dept A B C D E F
Links 6 6 9 7 4 4

A B C D E F
A X 5 20 20 10
B X 30 10 5 20
C X 30 15 5
D X 5 5
E X
F X

CD 30
BC 30
AC 20
AD 20
BF 20
CE 15
AF 10
BD 10
AB 5
CF 5
DE 5
DF 5
BE 5
Solve:
A B C D E F
A 5 15
B 5 10 20 10 5
C 10 5 10
D 20 20
E 10 10 15 20
F 5 15

Designing Process Layouts
• Goal: minimize material handling costs

• Block Diagramming
– minimize nonadjacent loads
– use when quantitative data is available
• Relationship Diagramming
– based on location preference between areas
– use when quantitative data is not available
POMOC ZG512 - PRODUCTION AND OPERATIONS MANAGMENT 16

Block Diagramming
• Unit load • Steps

• quantity in which 1. create load summary
material is chart
normally moved 2. calculate composite (two
• Nonadjacent load way) movements
• distance farther 3. develop trial layouts
than the next minimizing number of
block nonadjacent loads

Problem in Block Diagramming
Recovery First Sports Medicine Clinic is an outpatient

medical facility that provides a variety of medical
services to patients suffering from sports injuries. The
services include exams and X-rays, physical therapy,
and outpatient surgery. The departments housed in the
medical facility are shown here:

Initial Layout

From – To Matrix

Final layout

3. Load Distance Analysis
• Based on the load matrix between departments

• The centre distance between each department is used for the
movement of material.
• The consolidated movements between departments
multiplied with the distance between departments provides
the load-distance.
• The layout that provides least value of load-distance is to be
selected as the preferred layout.

Option 1 Option 2 Option 1 Option 2
A-B 10 15
A B C B
A- C 10 10
C A B-C 15 10
Interdepartmetal Work load Consolidated load matrix Option 1 Option 2

To → To →
50*10=500 50*15=750
From ↓ A B C From ↓ A B C
40*10=400 40*10=400
A -- 30 25 A -- 50 40
B 20 -- 40 B -- 90 90*15=1350 90*10=900
C 15 50 -- C -- 2250 2050

A set of alternative layouts have to be evaluated based on the given data.
Suggest the best layout.
The distance for analysis purpose can be taken as 0.5 mts for each adjacent
move. There cannot be diagonal moves. Example in current layout, the
distance between A and G will be 1 m (A-H-G). The number of trips or load is
given by the matrix below.
Current Layout Proposed layout 1 Proposed layout 2

A B C D A F B G E A D H
H G F E D E C H B F G C
Solution: Load-Distance method.xlsx

Load Handle Matrix
A B C D E F G H
A - 10 8 20 30 20 3 5
B 2 - 10 5 20 20 4 7
C 0 0 - 15 7 10 10 20
D 60 10 20 - 5 30 20 15
E 15 20 5 5 - 15 10 5
F 15 20 7 15 10 - 15 5
G 15 10 20 25 5 20 - 15
H 0 5 20 20 5 10 20 -

4. Load Cost Matrix Method
• Based on the load matrix between departments

• Cost of transporting between department is taken into
consideration
• Load * cost of movement = load cost for each movement
between departments.
• Sum of all such load-cost is the total cost for the layout.
• The alternative layout that give the least load-cost will be
selected as the preferred layout.

Suggested Layout
I II III IV
A B C D
Load Cost Matrix Load Handle Matrix

A B C D A B C D
A - 0.50 1.00 1.50 A - 10.00 8.00 6.00
B 0.50 - 0.50 1.00 B 2.00 - 12.00 4.00
C 1.00 0.50 - 0.50 C 0.00 0.00 - 2.00
D 1.50 1.00 0.50 - D 60.00 40.00 20.00 -

Load Handle Matrix
Solution: Load - Cost
A B C D
method.xlsx
A - 10.00 8.00 6.00
B 2.00 - 12.00 4.00
C 0.00 0.00 - 2.00
D 60.00 40.00 20.00 -
Alternate layout
Suggested Layout
I II III IV
I II III IV A D B C
A B C D
Load Cost Matrix Load Cost Matrix
A B C D A D B C
A - 0.5 1.0 1.5 A 0.5 10 1.5
B 0.5 0.5 1.0 D 0.5 0.5 1.0
C 1.0 0.5 0.5 B 1.0 0.5 0.5
D 1.5 1.0 0.5 C 1.5 1.0 0.5

ETZC 424 - PLANT LAYOUT 28
AND DESIGN
Suggested Layout Alternate layout
I II III IV
I II III IV
A D B C
A B C D
Overall Handling Cost Matrix Overall Handling Cost Matrix
A B C D Total A D B C Total
A - 5.00 8.00 9.00 22 A - 3.00 10.00 12.00 25
B 1.00 - 6.00 4.00 11 D 1.00 - 20.00 20.00 70
C 0.00 0.00 - 1.00 1 B 2.00 2.00 - 6.00 10

D 90.00 40.00 10.00 - 140 C 0.00 2.00 0.00 - 2
Total 91 45 24 14 174 Total 32 7 30 38 107

5. Operational Sequence Method
• Technique used to analyse the layouts based on the least

amount of backtracking.
• Follows the routing of products.
• Arrangement of machines or departments is shuffled to
achieve the objective.
• The arrangement which gives the least amount of
backtracking and maximum value for moves is considered as
optimal layout.

Proposed Layout
Product Sequence
R A B C D E F
1 R,C,B,D,F
2 R,A,E,B,C,F
3 R,E,A,E,B,F
4 R,A,B,C,D,E,F
5 R,C,A,B,F
6 R,D,C,A,E,F
7 R,E,A,B,F
8 R,A,C,E,A,F
9 R,C,B,D,F
10 R,C,A,C,B,C,E,F

Travel chart for proposed layout
R A B C D E F TOTAL
R - 3 4 1 2 10
A - 3 2 3 1 9
B - 3 2 3 8
C 3 3 - 1 2 1 10
D 1 - 1 2 4
E 3 2 - 3 8
F - 0
TOTAL 9 8 10 4 8 10 49

Forward Backtracking
No of No of
Rows Rows
from No of Moveme from No of Moveme
diagonal moves nt diagonal moves nt
1 14 14 1 2*4 8
2 8 16 2 2*3 12
3 5 15 3 2*2 12
4 7 28 4 2*3 24
5 3 15
88 56
Total movements = 88 + 56 = 144

Alternate layout
R C A E B D F
Product Sequence
1 R,C,B,D,F
2 R,A,E,B,C,F
3 R,E,A,E,B,F
4 R,A,B,C,D,E,F
5 R,C,A,B,F
6 R,D,C,A,E,F
7 R,E,A,B,F
8 R,A,C,E,A,F
9 R,C,B,D,F
10 R,C,A,C,B,C,E,F

Travel chart for alternate layout
R C A E B D F TOTAL
R - 4 3 2 1 10
C - 3 2 3 1 1 10
A 2 - 3 3 1 9
E 3 - 2 3 8
B 3 - 2 3 8
D 1 1 - 2 4
F - 0
TOTAL 0 10 9 8 8 4 10 49

Forward Backtracking
No of No of
Rows Rows
from No of Moveme from No of Moveme
diagonal moves nt diagonal moves nt
1 16 16 12*5 10
2 11 22 22*1 4
3 8 24 32*3 18
4 2 8 42*1 8
5 2 10
80 40
Total movements = 80 + 40 = 120

ETZC 424 – L 15 – Plant Location

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Plant Location

Introduction for Plant location
• Facility location is an important decision to be taken

for any business.
• Proper location provides a range of benefits to
support the sustainability and profitability of an
organization.
• Few organizations have suffered major losses due to
poor location selections as the consequences are
very costly in terms of loss of sales, additional capital
investment in new location and relocation of
infrastructure.
Objective of Plant Location
• To identify one or more locations that will

enhance the objective of the organization –
profit making or customer satisfaction.

Need for Location Decision
• Restricted facilities due to growing volume of business and

sales
• Rise in labour and overhead costs
• Variation in transportation costs
• Shifting of markets / raw material sources
• Diversification or introduction of new products
• Shifting necessitated due to labour problems, union activities
• Relocation of related industries or plants
• Merger of companies resulting in redundancies etc
• Shifting due to National Legislations.

Factors influencing Location
• Raw material • Availability of financial

• Market facilities
• Transportation • Govt aid and subsidies
• Labour • Ancillary units
• Power • Existence of similar
• Fuel industries
• Water • Social and recreational
facilities
• Climate
• Land
• Laws and taxes
• Capital
• Preferential factors

General Decision Process
1. Define the location objective and associated constraints

2. Identify the relevant decision criteria
1. Quantitative (economic)
2. Qualitative (less tangible)
3. Relate the objectives to the criteria using appropriate models
(economic cost, BEA, Linear programming etc)
4. Do field research to generate relevant data and develop location
alternatives
5.
1. Identify general region for location
2. Identify a small number of community site alternatives
3. Identify site
6. Evaluate the alternatives and make a decision.
Factors for selection of region
1. Customer concentration and trends

2. Labour availability and cost
3. Land and construction
4. Utilities supply and cost
5. Transportation system and cost
6. Materials and supplies availability and cost
7. Degree of unionisation
8. Climate
9. Related /ancillary industries
10. Government policies
Factors for selection of community

2. Community services and trends
3. Community attitude towards new facility location
4. Labour availability and cost
5. Site availability and cost
6. Construction cost
7. Transportation system and cost
8. Material and supplies availability and cost
9. Banking services
10. Environmental impact
11. Preference of management

Factors for selection of site

2. Site cost
3. Size of site
4. Proximity to transportation system
5. Site availability and cost
6. Construction cost
7. Transportation systems and cost
8. Environmental impact
9. Materials and supplies availbility

Other considerations for location
• Country Site
• City Site
• Urban Site

General procedure for site selection
1. Choose a site selection committee – composed of people

knowledgeable on the facts and factors and responsible for
1. Determining scope and best method of survey
2. Identifying and giving consideration to all pertinent requirement
3. Conducting the selection process in a through competent manner
4. Providing an economic analysis of likely locations
5. Making selections objectively
6. Scheduling site acquisition steps in coordination with all company
functions.
7. Reducing accord on final choice of site

2. Determine the company needs
1. Establishing the goals, objectives and criteria discussed in previous
step
2. Obtaining enough data on specific physical needs – size of building,
size of site etc

3. Obtain knowledge of selection process and techniques:
Commonly used techniques for site selection are
a) Check list
b) Questionnaire
c) Punched cards
d) Spreadsheets
e) Mathematical model
f) Cost comparison
g) Combinations

4. Decide on overall approach
a) Empirical or trail-or-error method where alternatives are selected,
evaluated, compared and best chosen.
b) Based on best alternatives for criteria chosen. Hence the correctness
depends on the criteria chosen.

5. Accumulate the data
a) Needed data is first identified
b) Data must quantify or support the question implied by factors
influencing the site selection
c) Involves locating the sources of data, actual collection of data and
tabulation in usable format

6. Analyze the data : this step involves
a) Sorting and classifying
b) Checking for complexness
c) Summarizing the various aspects
d) Determining the practicability of data
e) Average weight or otherwise, treating data to yield useful
information
f) Developing charts, graphs, maps and tables to properly present data
g) Checking for inconsistencies, omissions, errors and unnecessary or
irrelevant data.

7. Evaluate the alternatives:
Steps involved are
a) Select the factors of most specific interest to the enterprise
b) Rank them in order of importance
c) Evaluate each region, community or site for each location alternative
8. Reduce possible sites to a workable minimum

It is necessary to reduce the sites under consideration to few numbers.

9. Investigate the alternative sites in detail
a) Each potential site should be collectively evaluated by the team of
consultants, appraisers, architects and builders.
b) The visits are expected to be confidential.
10. Collect and analyze further data: In case any further data is
required to analyze the sites, based on current situation.

11. Select and obtain the site: The final step involves technical
and legal steps for procurement of the site. Verification of
a) Surroundings of the area
b) Accuracy of legal description
c) Easement and their guarantees
d) Land Records
e) Right of way
f) Covenants, conditions, restrictions
g) Soil conditions
h) Contour map details

Recap
• Reasons for location selection

• Factors for location selection
• Procedure for site selection

ETZC 424 – L8

Pilani Campus
BITS Pilani
Pilani Campus
Topic: Quantitative Layout Analysis

Line Balancing
• Important technique for production system to achieve

efficiency and economy.
• Applicable to continuous, mass and flow production where
demand for one or few standard products is large and
continuous.
• Utilized when the product and the sequence of production is
fixed, machines are laid out in the order of operations
required to be performed.

Terminology used in Line Balancing
1. Work Element
2. Total Work Content time
3. Service and Operation Time
4. Cycle Time
5. Idle Time

Steps in Line Balancing
1. Gather the volume of production and the time available to
calculate the cycle time.
2. Gather the individual element work and time required to
complete them with precedence constraints
3. Develop a precedence diagram / matrix
4. Calculate the number of machines required to meet the
production.
5. Use any of the methods to allot work elements to the
machine by following the precedence constraint and cycle
time per machine.
6. Calculate the line efficiency.
Problem 1 Line Balancing
The manufacturing engineers at Kid-o-tronics Industry

are working on a new remote-control toy truck. They
hired you as their production consultant to help them
determine the best type of production process to meet
the forecasted demand for this new product. You
recommended to use an assembly line. The line must
be able to produce 600 trucks to meet the forecast. The
workers in the plant work 8hrs per day. The task details
are given below.

. Task time Tasks that must
(seconds) precede
A 28 -
B 13 -
C 35 B
D 11 A
E 20 C
F 6 D,E
G 23 F
H 25 F
I 37 G
J 11 G,H
K 27 I,J

– Draw the schematic diagram [1]
– What is the required cycle time to meet the forecasted
demand of 600 trucks? [1]
– What is the theoretical minimum number of workstations
[1]
– Use Largest task time with alphabetic order as tie breaker
and balance the line in minimum number of stations to
produce 600 trucks [5]
– Comment on the actual number of machines in your
solution. [1]
– Calculate Balance Efficiency. [1]

Problem 2 – Line Balancing
Bharat Electronics is planning to upgrade its assembly line. In

the assembly of its product – digital clock, there are 10 steps
to be executed. The relevant details are given in the table
below. Determine [12]
– If Bharat Electronics needs to produce 120 digital clocks in 40

hour work week, how should the line be balanced? One worker
is assigned to each assembly station. How many workers are
needed to operate the line? What is the line efficiency?
– If the demand for the digital clocks increases necessitating the
number of assemblies to increase to 218 per 40 hr work week,
how many workers would be required on the line? Rebalance
the line and calculate the line efficiency.
– Comment on the result.

Task Precedence Time (Min)
A None 8
B A 4
C A 7
D A 3
E B 7
F C,E 11
G D 2
H G 8
I F,H 5
J I 7


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ET ZC 424 – Plant Layout and Design –

BITS Pilani Naga Vamsi Krishna Jasti

Introduction to Plant Layout

• What is Plant Layout?

ETZC 422 - PLANT LAYOUT AND DESIGN 3

Facility management (or facilities management or FM) is an interdisciplinary

Facilities management is the integration of processes within an organisation

ETZC 422 - PLANT LAYOUT AND DESIGN 4

– Inbound logistics (receipt, inspection, quarantine)

ETZC 424 - PLANT LAYOUT AND DESIGN 5

• Facilities management plans, procures, organizes and provides

• Physical location or configuration of departments,

ETZC 422 - PLANT LAYOUT AND DESIGN 7

• Placing the right equipment, coupled with right method, in

ETZC 422 - PLANT LAYOUT AND DESIGN 8

• Increased output or turnover

ETZC 422 - PLANT LAYOUT AND DESIGN 10

• Principle of over-all integration

ETZC 422 - PLANT LAYOUT AND DESIGN 11

ETZC 422 - PLANT LAYOUT AND DESIGN 12

ETZC 422 - PLANT LAYOUT AND DESIGN 13

ETZC 422 - PLANT LAYOUT AND DESIGN 14

Common reason for redesign of layouts:

ETZC 422 - PLANT LAYOUT AND DESIGN 15

• High accident rates or safety hazard

ETZC 422 - PLANT LAYOUT AND DESIGN 16

• Enlarging or reducing the existing departments –

ETZC 422 - PLANT LAYOUT AND DESIGN 17

• An auto parts manufacturer shifted one of its low-cost-product to a remote facility

• An industrial product manufacturer located in a metro city acquired a remote

ETZC 422 - PLANT LAYOUT AND DESIGN 18

• Wal-Mart has a system of cross docking in place of a warehouse

• An auto component manufacturer reduced inventory multi-fold after replacing its

• Mercedes Benz Research & Development spends considerable resource in

ETZC 422 - PLANT LAYOUT AND DESIGN 19

• What is Facility Management

ETZC 422 - PLANT LAYOUT AND DESIGN 20

BITS Pilani Naga Vamsi Krishna Jasti

Factors influencing Plant Layout

• What is Facility Management

ETZC 422 - PLANT LAYOUT AND DESIGN 3

• We shall be understanding the various factors that influence

• Also study their inter-relationships.

• Understand the influence factors and determine their impact

ETZC 422 - PLANT LAYOUT AND DESIGN 4

• Germany was well advanced in manufacturing bombers

ETZC 422 - PLANT LAYOUT AND DESIGN 5

• A flywheel manufacturer used an ingot to make slices and use

ETZC 422 - PLANT LAYOUT AND DESIGN 6

• The CSIA Mumbai was developed in the heart of Mumbai with

ETZC 422 - PLANT LAYOUT AND DESIGN 7

• Continuous Process Industry : Power Plants, Steel

ETZC 422 - PLANT LAYOUT AND DESIGN 9

• Product Design – features, special operations

ETZC 422 - PLANT LAYOUT AND DESIGN 10

• Decides the machines, tools, material handling

ETZC 422 - PLANT LAYOUT AND DESIGN 11

• The type of machinery decides the amount of space to be

ETZC 422 - PLANT LAYOUT AND DESIGN 12

ETZC 422 - PLANT LAYOUT AND DESIGN 13

• Movement of men for loading/unloading, inspection of

ETZC 422 - PLANT LAYOUT AND DESIGN 14

• Ergonomic working conditions