INDUSTRIAL MANAGEMENT AND ENGINEERING ECONOMY

Department of Industrial Engineering

CHAPTER-TWO
PLANT DESIGN
 2. Introduction to Plant Design
Plant design: is a broad function-taking place in the origin of an enterprise.
It is the planning of finances, the plant location and all the planning necessary for
the physical requirements of an overall design of a plant.
Plant Location is strategic decision and several factors influnce the decision
Factors affecting plant location:
1.Nearness to Market
2.Nearness to supply of raw materials
3.Availability of labor
4.Transport and communication facilities
5.Availability of power and fuel
6.Climatic conditions
7.Availability of water
8.Ancillary industries
9.Financial and other aids
 Plant (Facility) Location Methods
1. Factor rating method
2. Cost profit volume analysis
3. Center of gravity method Reading Assignment
4. Transportation model
Example: Factor Rating Method
Samson ltd is considering three alternative sites for its new
facility that best suits for solar power generation,
communication, using multipurpose computer numerically
control machine. After evaluating the firms need the manager
has narrowed the list of important selection criteria dawn to
three major factors.
Step 1. identify major factors(The three major factors are)
a. Availability of labor
b. Availability of raw material
c. Proximity to market
 Weight reflecting importance of each factor is assigned as
follows.
Factor Relative Weight

a. Availability of skilled labor 0.5

b. Availability of raw material 0.3

c. Proximity to market 0.2

 Step 2.Based on the three criteria the three alternative sites
were scored between 0 and 100 points as follows
(Score the alternative sites w.r.t. the major selection factors)
Alternative sites

Factors Site - A Site - B Site- C

a. Availability of skilled 70 70 50
labor

b. Availability of raw 60 40 90
material

c. Proximity to market 70 95 60
 Site A Site B Site C
Weigh
Factor Weighted Weighted Weighted
t Score Score Score
score score score

a. Skilled
0.5 70 35 70 35 50 25
Labor

b. raw
Material
0.3 60 18 40 12 90 27
availabilit
y
c. Market
0.2 70 14 95 19 60 12
proximity
67%-
Total Selected to
1 - - 66% - 64%
Weight as a best
alternative
What is plant layout?
• Once a suitable location of the plant has been decided
upon, the next important issue is the design of the layout.
• Plant layout is the plan for arranging the physical facilities
and manpower required to manufacture a product with the
objective of utilizing them in an effective manner.
• Plant layout is also known as facilities design. Plant layout
constitutes planning of the amount of space required for all
kind of activities in an industry, i.e., equipment,
machinery, furniture and fittings, offices, rest rooms,
warehouses etc. The primary objective of plant layout is to
minimize the movement of men and materials in the plant.
 …cont’d
Importance of a plant layout
• Designing a proper layout is important because it has a direct
relationship with efficiency of operations and cost of production.
• A poorly designed layout will result in inefficiencies and losses
throughout the existence of the plant.
• As decisions regarding plant layout cannot be taken once and for
all, changes in process and techniques of production necessitate
changes in plant layout.
• It is therefore important to design the layout in such a way that
it is flexible to change.
2.1 Basics of Plant Layout

Plant layout:
 It has been defined as a plan of, or the act of planning an
optimum arrangement of industrial facilities, including
personnel, operating equipment, storage space, materials
handling equipment and all other supporting services along
with the design of the best structure to contain these facilities.
 It’s primary goal is to maximize the profit by arrangement of
all the plant facilities to the best advantage of total
manufacturing of the product.
Basics of Plant Layout……cont’d

Principles of Plant Layout includes the following:

 Principle of integration: A good layout is one that integrates
men, materials, machines and supporting services.
 Principle of minimum distance: concerned with the
minimum travel (or movement) of man and materials.
 Principle of cubic space utilization: good layout is one that
utilizes both horizontal and vertical space.
 Principle of flow: A good layout is one that makes the
materials to move in forward direction towards the
completion stage
Basics of Plant Layout…….cont’d

 Principle of maximum flexibility: future requirements

should be taken into account while designing the present
layout
 Principle of safety, security and satisfaction:
 Principle of minimum handling: minimize materials
handling to the minimum.
 Steps involved in designing a plant layout
Since decisions regarding layout design have considerable impact in the
efficiency and profitability of a firm it requires careful consideration. The
following are the steps involved in designing a layout:
1. Collection of required data: data about the size of the plant, type of
products to be produced, method of production to be adopted, extent
of mechanization etc. are to be collected.
2. Preparation of blueprint for the floor plan: based on the data
gathered, a blueprint/drawing has to be prepared for the floor plan.
 Care should be taken to ensure that the layout provides for unhindered
movement of men and materials with minimum possible effort and
time.
 …cont’d
3. Preparation of process chart and flow diagram: the process
chart and flow diagram depicting the various activities to be
performed and the linkages between them has to be prepared.
4. Preparation of draft layout: a draft layout needs to be prepared
clearly depicting/showing the positioning of men and materials
and the process flow.
 The draft layout should be circulated and discussions held with
employees inviting suggestions for improvement.
 Flaws pointed out need to be corrected and suggestions received
incorporated after due discussions.
 …cont’d
5. Test run: a test run is important to understand the efficiency of
the layout in a real time work environment.
 Problems not noticed in the earlier stages can occur at this stage.
 The initial problems noticed need to be modified and test runs
should be continued for at least a few times to ensure that the
layout is able to facilitate maximum production at minimum cost.
2.2 Study of plant layout & Classification of Layout

There are four types of layout in industrial manufacturing

process. These are:
 Process layout
 Product layout
 Fixed position layout, and
 Group layout
Classification of Layout……..cont’d
A. Process Layout
 Similar equipment and similar operations are grouped together.
 Example, all lathes, milling machines, etc. are grouped in the
shop will be clustered in like groups.
 It is particularly useful where low volume is required.
Classification of Layout……..cont’d

Schematic representation of Process layout

Foundry Drilling Grinding Brazing Inspection
Dep’t Dep’t Dep’t Dep’t/welding Dep’t

4
2 6
1 7

Finished Good
4 5
Raw Materials

Store
3 8
1 5 6
3
2 7
Press Milling
Heat Treat Painting Packing
Dep’t Dep’t
Dep’t Dep’t Dep’t

Product A Product B
Classification of Layout………..cont’d
Advantages of process layout includes:
 Less duplication of equipment,
 Greater flexibility of production
 Better and more efficient supervision,
 Greater incentive for individual workers,
 Better control of complicated processes,
 Easier to handle breakdowns of equipment.
Classification of Layout………cont’d

Limitations of Process layout

• Backtracking and long movements may occur in the handling
of materials.
• Material handling cannot be mechanized which adds to cost.
• Process time is prolonged which reduce the inventory
turnover and increases the in process inventory.
• Lowered productivity due to number of set-ups.
• Throughput time is longer (time gap between in and out in the
process).
• Space and capital are tied up by work-in-process.
Classification of Layout………..cont’d

Process layout is used when:

 Many types of products are on special order,
 Relatively low volume of production
 Many inspections are required during operations,
 Equipment requiring special treatment exist,
 Products do not permit continues flow and
 One machine is used for different operations.
Classification of Layout………….cont’d

B. Product Layout
- Machines and auxiliary services are located according to the
processing sequence of the product.
- In product layout, machines are not shared by different
products.
Classification of Layout………cont’d

Schematic Representation of product layout

Product A Department

1 2 3 4 5 6 7

Finished Good
Raw materials

Press Mill Heat treat Grind Paint Inspect Pack

store
Product B Department

1 2 3 4 5 6 7 8

Cast Grind Mill Drill Braze Paint

Inspect Pack
Classification of Layout…….cont’d

Advantages of Product Layout

• Lower total material handling cost,
• Lower total production time,
• Less work in process,
• Greater incentive for groups of workers
• Less floor area required
• Greater simplicity of production control,
• Perfect line balancing which eliminates bottlenecks and
idle capacity.
Classification of Layout…….cont’d

Limitations of Product layout

• A breakdown of one machine in a product line may cause
stoppages of machines in the downstream of the line.
• A change in product design may require major alterations in
the layout.
• The line output is decided by the bottleneck machine.
• Comparatively high investment in equipments is required.
• Lack of flexibility: A change in product may require the facility
modification.
Classification of Layout…….cont’d
Product layout is used when:
– Standard, few, products are to be produced,
– Large volume of production is needed,
– Minimum of inspection is required,
– Minimum of special equipments are needed,
– Products permit continuous handling
– One machine is always used for one purpose.
Classification of Layout…….cont’d

C. Fixed Position Layout

- The material, or major components remain in a fixed location
and tools, machinery, men and other materials are brought to
this location.
- This type of layout is suitable when one or a few pieces of
identical heavy products are to be manufactured and when the
assembly consists of large number of heavy parts, the cost of
transportation of these parts is very high.
Classification of Layout…….cont’d

- Typical examples are shipbuilding's, construction industries,

aircraft building and etc.
- This type of layout is not frequently used in industrial
enterprises.

Fixed Position Layout

Classification of Layout…….cont’d
Classification of Layout…….cont’d

Advantages of fixed position layout

• Helps in job enlargement and upgrades the skills of the
operators.
• The workers identify themselves with a product in which
they take interest and pride in doing the job.
• Greater flexibility with this type of layout.
• Layout capital investment is lower.
 Classification of Layout…….cont’d

D. Group layout (or cellular layout)

• GT can be used to develop a hybrid between pure process layout and
pure flow line (product) layout.
• This technique is very useful for companies that produce variety of
parts in small batches to enable them to take advantage and
economics of flow line layout.
• The application of group technology involves two basic steps;
– First step is to determine component families or groups.
– The second step in applying group technology is to arrange the
plants equipment used to process a particular family of
components.
Classification of Layout…….cont’d
Classification of Layout…….cont’d
Advantages
 Higher machine utilization
 Smoother flow lines and shorter travel distances are expected than
for process layout
 Offers some benefits of both product and process type of layout
because it is a compromise between the two
 Encourages consideration of general purpose equipment
Disadvantages
 Greater labor skills required
 Flow balance required in each cell
 Has some of the disadvantages of product and process type of
layout; it is a compromise between the two
 2.3 ERGONOMICS AND INDUSTRIAL SAFTEY
 The term "ergonomics" is derived from two Greek words: "ergon," meaning
work, and "nomoi," meaning natural laws.
 Ergonomics is the study of the relationship between people, their work
tools, their work place, and the tasks they perform.
 It can also be defined as the study of human abilities and characteristics
which affect the design of equipment, systems and jobs
 Ergonomists study human capabilities in relationship to work demands.
 Ergonomics is important because when you’re doing a job and your body is
stressed by an awkward posture, extreme temperature, or repeated
movement your musculoskeletal system is affected.
 Your body may begin to have symptoms such as fatigue, discomfort, and pain,
which can be the first signs of a musculoskeletal disorder (MSDs)
 Musculoskeletal disorders (MSDs) are conditions that affect your body’s muscles,
joints, tendons, ligaments, and nerves.
 MSDs can develop over time or can occur immediately due to overload.
Ergonomics and industrial safety cont.…

 More specifically, ergonomics is the science of designing the job to fit

the worker, rather than physically forcing the worker’s body to fit the
job.
 It is an interdisciplinary activity based on engineering, psychology,
anatomy, study of body structure, physiology and organizational
studies.
• When the physical capabilities of the worker do not match the
physical requirements of the job, Work-related MSDs or
musculoskeletal disorders can occur.
• MSDs are injuries and disorders of the soft tissues (muscles, tendons,
ligaments, joints, and cartilage) and nervous system.)