Facility location

Sameer Nikam
Pune University
Need
 To establish new venture
 Expansion
 Change in supply chain
 Diversification
 Change in government policy
Factors affecting Plant Location
selection
 Proximity to market
 Proximity to raw material
 Business Climate
 Total cost
 Infrastructure
 Quality of labour
 Free trade zone
Factors affecting Plant
Location selection
 Political risk
 Government barrier
 Trading block
 Environmental regulation
 Competitive advantage
 Transportation
 safety
Example
 Paper and Plastic industries are mostly in Div and Daman
area
 Steel Plants are located in central or East part of India
 Wine industries are in rural area.
 Textile Mill are in west part of India
 Sugar Mills are also in west
 Nuclear plant
 Automobile manufacturing Plant are near to market
Facility Layout
Plant Layout
 Planning of Space requirement for facilities and

arranging them in the manner that ensures steady flow

of production with minimum overall cost.

Poor Layout will create
 Congesting
 Disruption in material flow
 Unnecessary material handling
 Scrap and rework
 Higher throughput time
 Wasted movement
 Inefficiency
 High inventory
Need
 New plant
 Change in demand may lead to change in layout
 NPI
 Change in product design
 To improve efficiency
Objective of layout decision
 Smooth flow of work, material, people, information
 Minimize material handling cost
 Labour utilization
 Space utilization
 Eliminate bottleneck
 Communication and coordination among different level
of working people
 Reduce manufacturing cycle time
 Safety & security
 Proper maintainance activity
 Flexible to adapt change
 Increase capacity
Type of Layouts
 Process Layout

 Product Layout

 Fixed Position Layout

Process Layout
 It is known as functional layout, which group similar
activities together according to process they
perform.
 Basically associated with Batch type production
 Product is less in qty
 Sequence of operation can vary considerably
 Can be used for retail shop.
 Equipments used are general purpose
 Forklift is mostly used material handling equipments
Advantage
 Flexibility
 Break down of machine will not affect actual
production
 Worker are skilled at operating the
equipments in their particular dept.
Disadvantage
 Inefficiency
 Movement from Dept to Dept can take more
time
 Fluctuation in the workload
 Require more storage space.
 WIP inventory will be Excess. And Finished
goods inventory will be low.
 Process Layout in Process Layout in
Manufacturing Services

Lathe Mill Machine Painting

Machine

L L M M M P
Women Cosmetics Jewelry
L L P
wear
M M M

L L Welding
M M M Men Kids
Toys
W W
wear wear
L L
Grinding
Machine W W
Drill Fashion Free gift
G G G Shoe
Machine Accessories
Assembly

D D G G G A

D D G G G A
Product Layout
 Layout by sequence
 Arranging work centers in line according to sequence of operation
that need to perform to assemble the product
 Each product has its own line
 Continuous flow of goods
 Material moves in one direction
 Use of special purpose machine is higher
 Suitable for mass production or repetitive operation.
 Demand should be stable
 Volume will be high
 Product should be standard not customize
 use of automation is more compare to process layout.
 Conveyor is mostly used material handling equipments.
 Continuous flow of raw material is important.
 Output of one machine is input for next machine.
 Example: Assembly line of Automobile, production line of Sugar,
Cement
Cutter Lathe Inspection

Welding
Raw Flow of goods
Material

Drill
Finished Flow of goods
Goods

Packing Painting Assembly

Advantage
 Efficiency is higher
 Requirement of aisle space is less.
 WIP inventory is very low
 Manufacturing cycle time is less
 Material handling is low.
 Production planning and control is easy.
 This layout avoids production bottleneck.
 Line balancing may eliminate bottleneck & idle time
Disadvantage
 Not flexible.
 Any change in product or process will change the
layout
 More expensive.
 Breakdown to any work center will stop whole system.
Fix Position Layout
 Fixed position Layout is used for project in which the
product can not be moved.
 Example : Ship, house, aircraft, heavy metal
fabrication
 Product remains stationary for the entire
manufacturing cycle.
 Use of equipments is low.
 Equipments are mostly outsource.
 Fixed potion Layout is specialized for individual
project
 Volume of production is very low
Cellular layout
D1 D2 D3

W3 W4 W3 W4 W3 W4

W2 W5 W2 W5 W2 W5

W1 W6 W1 W6 W1 W6

W1 W1 W1 W1

W1 W1

D4 D5
W1 W1

W1 W1 W1 W1
Thankyou!