A scientific criteria for determining a good Plant Layout: 1.

Integration: Integrates of men, materials and machines and support services in order to get the optimum output of resources. 2. Cubic space utilization: Utilization of both horizontal and vertical spaces and height is very important to use the space as much as possible. 3. Minimum distance: Minimum travel of men and material should be implemented means; the total distance travel by the men and material should be minimized as much as possible. Further straight line movements should be promoted. 3. Floor: Arranging the floor to move the material/finished products in forward direction towards the final stage. 4. Maximizing coordination: Entry into and disposal from any department should be in such manner that it is most convenient to the issuing or receiving departments. The layout should be consider as a whole. 5. Minimum flexibility: The layout should be able to modify when necessary. 6. Maximum accessibility: All servicing and maintenance points should be readily accessible. For example; equipment should not be placed against a wall because necessary servicing or maintenance cannot be carried out easily. Further; equipments or other necessary units keep in front of a fuse box will impede the work of the electrician. 7. Safety security: Due consideration to industrial safety methods is necessary. Care must be taken not only of the persons operating the equipment, but also of the passes-by, who may be required to go behind equipment as the back of which may be unsafe. 8. Minimum handling: Reduce the material handling to the minimum. Material being worked on should be kept at working height and never have to be placed on the floor if it is to be lifted later. The following principles also can be taken in to account when planning for a good plant layout;
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The geographical limitations of the site; Interaction with existing or planned facilities on site such as existing roadways, drainage and utilities routings; Interaction with other plants on site; The need for plant operability and maintainability; The need to locate hazardous materials facilities as far as possible from site boundaries and people living in the local neighborhood; The need to prevent confinement where release of flammable substances may occur; The need to provide access for emergency services; The need to provide emergency escape routes for on-site personnel; The need to provide acceptable working conditions for operators.

the location should be selected as per its own requirements and circumstances. 94 7.2. If at all changed only at considerable loss. Each individual plant is a case in itself.What is Material Handling? A16. PLANT LOCATION Every entrepreneur is faced with the problem of deciding the best site for location of his plant or factory. but also for meeting their customers' needs. materials handling is very important to outbound logistics. It is a strategic decision that cannot be changed once taken. In inbound logistics terms.1 LOCATIONAL ANALYSIS Locational analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given enterprise. But the choice is made only after considering cost and benefits of different alternative sites. . small-scale entrepreneur can make use of locational analysis for this purpose. It consists the following: (a) Demographic Analysis: It involves study of population in the area in terms of total population (in no. occupational structure etc. accurately filling orders. Material Handling has four dimensions: Movement Time Quantity Space Material Handling improves efficiency by making the logistics system respond quickly and effectively to plant and customer requirements. and rapidly preparing orders for shipment to customers. age composition. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution. the least risk and the maximum social gain. with a large market share. Businessman should try to make an attempt for optimum or ideal location. materials handling serves company plants in the same way. What is plant location? Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. educational level.). Firms need to integrate materials handling requirements not only for the company's departmental needs. For achieving this objective. What is an ideal location? An ideal location is one where the cost of the product is kept to minimum. For efficient movement of goods into the warehouse. locating stock. Material Handling can be defined as "efficient short-distance movement of goods that usually takes place within the confines of a building such as a plant or a warehouse or between a building and a transportation agency. per capita income.

the traffic analysis aims at judging the alternative sites in terms of pedestrian and vehicular traffic passing a site. miscellaneous expenses. Positive includes cheap overhead facilities like electricity. banking transport. link roads. airports or sea ports. (e) Site economics: Alternative sites are evaluated in terms of establishment costs and operational costs under this. k) Residence of small business entrepreneurs want to set up nearby their homelands 1) Process layout (2) Product layout (3) Combined layout (4) Static product layout or Project layout (5) Cellular layout (6) Job Shop layout. nearness to railway stations. The important considerations for selecting a suitable location are given as follows: a) Natural or climatic conditions. He would also see the feasibility of accessing the trade area from alternative sites. they are also called as running costs. h) Locations with links: to develop industrial areas or business centers result in savings and cost reductions in transport overheads. location. tax relief. availability of electricity. civil amenities and means of communication are important. Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution control and decentralization of industries. g) Banking and financial institutions are located nearby.(b) Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. c) Transport costs-in obtaining raw material and also distribution or marketing finished products to the ultimate users. b) Availability and nearness to the sources of raw material. size and quality of competition in a given trade area. subsidies and liberalization. Costs of establishment is basically cost incurred for permanent physical facilities but operational costs are incurred for running business on day to day basis. especially for small scale businesses. (d) Traffic analysis: To have a rough idea about the number of potential customers passing by the proposed site during the working hours of the shop. d) Access to market: small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas. e) Availability of Infrastructural facilities such as developed industrial sheds or sites. public utilities. (c) Competitive Analysis: It helps to judge the nature. j) Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a particular location are made available. water. i) Strategic considerations of safety and security should be given due importance. f) Availability of skilled and non-skilled labour and technically qualified and trained managers. Each layout is explained in brief in the following paragraphs: .

Thus all forging will be done in one area and all the lathes will be placed in another area. Disadvantages: The following are the main disadvantages of the process layout: 1) Due to lack of straight line sequence of production. The sequential arrangement of the machine group is generally. Advantages: The process layout avails of the following advantages: 1) Like product layout it eliminates the duplication of machines an enables the optimum use of installed capacity. In this type of layout the process rather than the product has a dominating role. the break down of one machine does not interrupt the entire production flow.Process layout: It is also called functional layout. So the problems of bottleneck and waiting and idle capacity arise. 3) The processing time is prolonged which reduces the inventory turnover and increase the investments in inventories. 5) Individual incentive schemes can be developed. 4) Specialization in supervision becomes possible. several products may share a machine to make its full use. All machines performing similar type of operations are grouped at one location in the process layout e. So. but not necessarily made on the basis of labor operations. This type of process is more suitable to job order type of production. It is more flexible than a line layout. cutting machines etc in the engineering shop will be clustered in their like groups. Due to frequent changes in the machine set-up inspection is required at each stage of the process. all lathes. it is impossible to maintain the line balancing in production. 3) Like product layout. 2) The cost of material handling increases due to long routing and back tracking between the processes.g. 2) It facilitates the flexibility in production. The typical arrangement of the machines in the process layout will be as under: Product ‘A’ and Product ‘B’ with their differential sequence will be routed for the processing in the manner. 6) The production planning and control becomes difficult due to complexities arising in routing. dispatching and follow up. The product is given secondary consideration and is moved for the purpose of operations to the process section with like machines stationed at a particular point. 4) The inspection cost increases. 7) It is not possible to implement the group inventive schemes on the basis of quantity of the products manufacturing . In this layout. Different products can be made without the changes in the arrangement of machine. The production capacity is not arranged in rigid sequence and fixed rated capacity with line balancing. scheduling. milling machines. In such production the operation differs from product to product. it is desirable to arrange the machines on the basis of process rather than on the products. 5) The cost of supervision increase due to specialist supervisors and more number of supervisors are required at each process unit.

The best known example of this type of layout is seen in motor car production. 9) Maximum use of space due to straight production flow and reduced need of interim storing. the product is dominating over the process. The process of getting even loading at each stage of production is called line balancing. 2) Mechanization of material handling is possible due to handling between fixed points. reservoir of materials and provision for the expansion of the particular process section. the work load on the various machines must be balanced. All machines as required to balance the particular product the product line layout. To make this layout successful. 4) Shorter operating cycle due to shorter and speedier movement of materials. 3) Line balancing may eliminate bottlenecks an idle capacity. 11) It is relatively easy to control – . 6) Effective control over production with reduced supervision by generalist supervisors. Product layout: In this type of layout. By reducing the manufacturing to simple steps we can often use less skilled labor. In this type of layout. 7) Effective quality control with reduced inspection points. 10) It facilitates the implementation of the group inventive schemes for the workers.8) More space is required for internal storing. 5) Maximum utilization of machine and labor capacity through developing proper balance between them. In this layout. the machines are arranged in the sequence as required by the particular product. the routing. It does not require frequent changes in machine set-up. The typical arrangement of the machines in the product with the separate independent product lines for the Product ‘A’ and Product ‘B’ will be as shown. Advantages: The product layout is advantageous as under: 1) Reduced material handling cost due to straight line production flow. the process is given secondary importance in relation to the product. Thus. dispatching and follow up are relatively easier. in the sense that the product is given the primary importance and the process machine must remain present at a point where the product needs its services. Unlike process layout. one product goes through all the machines lined up. Product layout suitable for continuous flow production with few items of production: It does not require frequent changes in machine set up. unlike the process layout. in the order required by its manufacture. 8) Effective production planning and control. scheduling.