Department of Wood Technology

Industrial Management and Engineering

Economics (MGT 382)
Individual Assignment Two
Instructions

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a.The final documents should be submitted by binding form.
b.Last submission date of the project proposal will be after two weeks.
c.A project has to be unique for each group
d.It will be checked out of 25%
1.Prepare A Plant Layout Design for a Wooden Furniture Industry
Points to be covered in Plant Layout and process design
I. INTRODUCTION
II. II.DETAILED DESIGN OF THE LAYOUT
A.General Objectives of Factory Layout
B.Detailed Design In Process Layout
C.Combined Layout (Identify methods of furniture manufacturing process)
D.Plant Layout
E.Furniture Manufacturing Hand Tools, Portable Equipments and Machinery
F.Manpower Requirement
G.Production Capacity
H.Working Capital
III.CALCULATION OF PAYBACK PERIOD
IV.CONCLUSION
V.REFERENCES
I.INTRODUCTION

Plant layout is an arrangement of machines and facilities is layout. F.G.

Moore. Plant layout can be defined as a technique of locating machines,
processes and plant services within the factory so as to achieve the greatest

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possible output of high quality at the lowest possible total cost of
manufacturing.
According to Moore “Plant layout is a plan of an optimum arrangement of
facilities including personnel, operating equipment, storage space, material
handling equipment and all other supporting services along with the design of
best structure to contain all these facilities

II.DETAILED DESIGN OF THE LAYOUT

A / To provide optimum space to organize equipment and facilitate movement of goods and to create
safe and comfortable work environment. To promote order in production towards a single objective.
A. Genera Objectives of Factory Layout

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B. Detailed Design In Process Layout

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C Combined Layout (Identify methods of furniture manufacturing process)

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D Plant layout

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E Furniture Manufacturing Hand Tools, Portable Equipments and Machime
NO NAME OF MACHINE & QOUANITI UNIT TOTAL PRICE
HAND TOOL TY PRICE
1 RADIAL ARM SAW 1 30 000 30 000
2 Table saw 1 500 000 500 000
3 Planer machine 1 800 000 800 000
4 Band saw 1 900 000 900 000
5 Air copresor 1 80 000 80 000
6 Lath machine 1 250 000 250 000
6 CNC Machine 1 1 000 000 1 000 000
7 Drill press 1 150 000 150 000
8 Portable sander 2 9 000 18 000
9 Portable drill 2 15 000 30 000
10 Router 2 15 000 30 000
11 Jig saw 2 15 000 30 000
12 Claw hamer 10 200 2000
13 meter 10 100 1000
14 Wood file 10 100 1000
15 Try square 10 80 800
16 Bow saw 10 300 3000
17 Hand saw 5 200 1000
18 Nail gun 2 1000 2000
19 Screw draiver 10 100 1000

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20 Total 417600 birr

F. Manpower Requirement /Furniture manufacturing

F.
no Salery
Personel stutus
Personel opratore / activatore Skill man Non Number Per month 12 month
skill of
man persons
1 Gourd / security ------ Un skill 1 1500 18 000
2 Lunber transportation opratore -------- Un skill 1 2 000 24 000
3 Design maker Skill man -------- 2 5 000 120 000
4 Material selectoe Skill man -------- 1 5 000 60 000
5 Ragh Triming / cuting oprator Skill man -------- 2 6 000 144 000
6 Planing machine opratore Skill man -------- 2 6 000 144 000
7 Final cuting & riping opratore Skill man -------- 2 6 000 144 000
8 Fit and asembling opratore Skill man -------- 2 8 000 192 000
9 Sanding opratore Skill man -------- 2 5 000 120 000
10 Finale assembling opratore Skill man -------- 2 6 000 144 000
12 Finishing toch opratore Skill man -------- 3 25 00 80 000
Toal 20 471800 birr

G. Production Capacity
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Building raint 20 000 birr /month
Per year 240 000 birr

Anualy production capacity

no Anualy product
Product/ Product/total
Monthly/ Product / year Unit price yearly price
product
1 Bed 5 60 15000 900 000
2 table 40 480 2000 480 000
Total 1380 000 birr

Material bell
no Iteam of material Qounitty Spesficatio Unit Unit price Total price
n
1 Laminate MDF 100 1.8 pcs 3000 300 000
2 Screw 50 18 mm Pacqte 200 10000
3 viner 100 plastic metr 40 4000
3 hinge 600 spring pcs 100 60000
4 key 600 single pcs 100 60000
5 slider 500 No 40 pcs 200 100 000
6 Table shoes 960 5 diametr Pcs 100 96000
Total 417600 birr

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A basic way to find out the production capacity is by multiplying the number
of available workstation capacity by the available time in a work shift. For
example, if a machine's design capacity is 10 units in an hour and the work
shift is 8 hours, the production capacity for the machine is 80 units per shif
Production capacity is the maximum product output a company can produce using
its available resources over a specified amount of time. This metric is
important because it informs a manufacturer's critical business decisions in
both the near and long-term.

H. Working Capital
- machine and tools = 417600 birr

- salery = 471800 birr

-Raint = 240,000 birr
Production capacity = 417600 birr

Total in vestment = 1547000 birr

III.CALCULATION OF PAYBACK PERIOD

To calculate the payback period you can use the mathematical

formula: Payback Period = Initial investment / Cash flow per year
For example, you have invested Rs 1,00,000 with an annual payback
of Rs 20,000. Payback Period = 1,00,000/20,000 = 5 years.

Payback Period = Initial investment / Cash flow per year

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 /
1547000 birr 417600 birr =3.7 year

Concullussion
To provide optimum space to organize equipment and facilitate movement of
goods and to create safe and comfortable work environment. To promote order in
production towards a single objective. To reduce movement of workers, raw
material and equipment. To promote safety of plant as well as its workers.

Refference
www.onlinedesignteacher.com
WWW. Management studu guid.com
www.tetrahedon.in
www.refereneceforbussenes.com

Good luck!!
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