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Chap 3 - Facility /Plant/Factory Layout:











Facility Layout
Introduction Objectives & Principles Factors Affecting Layout Selection and Design Types of Plant Layout
Product Layout Process Layout

Fixed position layout or static layout; Combination layout or Hybrid layout

Plant layout
MeaningPlant layout is the physical arrangement of industrial facilities. It involves the allocation of space & the arrangement of equipment in such a manner that overall operating costs are minimized.

Plant layout refers to the arrangement of physical facilities such as machines, equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of raw material to the delivery of the final product.

Facility layout means planning:
for the location of all machines, utilities, employee workstations, customer service areas, material storage areas, aisles, restrooms, lunchrooms, internal walls, offices, and computer rooms for the flow patterns of materials and people around, into, and within buildings infrastructure services such as the delivery of line communications, energy, and water and the removal of waste water all make up basic utilities.

Locate All Areas In and Around Buildings

Equipment Work stations Material storage Rest/break areas Utilities Eating areas Offices

Proper and efficient utilization of available floor space. Reduce material handling costs Provide ease of supervision and control. Allow easy maintenance of machines and plant.

Objectives of Plant Layout

Elimination of unnecessary occupied areas. Reduction of administrative and indirect work. Improvement on control and supervision. Better adjustment to changing conditions. Better utilization of the workforce, equipment and services. Reduction of material handling activities and stock in process. Reduction on parts and quality risks. Reduction on health risks and increase on workers safety. Economies in materials, facilitate manufacturing process & handling of semi-finished & finished goods. To provide adequate safety to the workers from accidents. To meet the quality & capacity requirements in the most economical manner. Provision of medical facilities & cafeteria at suitable & convenient places. To provide efficient material handling system. .

Principles of plant layout

1. Principle of integration 2. Principle of minimum distance 3. Principle of cubic space utilization( both horizontal & vertical space). 4. Principle of flow( must be forward no backtracking) 5. Principle of maximum flexibility 6. Principle of safety, security & satisfaction 7. Principle of minimum handling.

Types of Layout
i. ii. iii. iv. v. Process layout or functional layout or job shop layout; Product layout or line processing layout or flowline layout; Quantity Fixed position layout or static layout; Combination layout or Hybrid layout. Cellular or Group Layouy

Product Layouts

Fixed Position Layouts Mixed Layouts Process Layouts

Number of Different Products

Manufacturing units
(a) Product or line layout:
Under this, machines and equipments are arranged in one line depending upon the sequence of operations required for the product. The materials move form one workstation to another sequentially without any backtracking or deviation. Under this, machines are grouped in one sequence. Therefore materials are fed into the first machine and finished goods travel automatically from machine to machine, the output of one machine becoming input of the next.

Suitability: Product layout is useful under following conditions: Mass production of standardized products Simple and repetitive manufacturing process Operation time for different process is more or less equal Reasonably stable demand for the product Continuous supply of materials

Types of plant layout

Product layout Layout that uses standardized processing operations to achieve smooth, rapid, highvolume flow Here machines are arranged acc. To the needs of product & in the same sequence as the operations are necessary for manufacture. E.g. back office of services such as banks and insurance companies.

Product (Assembly Line) Layouts

Product layouts are used to achieve a smooth and rapid flow of large volumes of products or customers through a system. A job is divided into a series of standardized tasks, permitting specialization of both labor and equipment. The large volumes handled by these systems usually make it economical to invest huge amount of money in equipment and job design.

Product (Assembly Line) Layouts

For instance, if a portion of a manufacturing operation required the sequence of cutting, sanding, and painting, the appropriate pieces of equipment would be arranged in that same sequence. Operations are arranged in the sequence required to make the product Product layouts achieve a high degree of labor and equipment utilization.

Characteristics of Product Layouts

Special-purpose equipment are used Changeover is expensive and lengthy Material flow is continuous
Material handling equipment is fixed Planning, scheduling and controlling functions are relatively straight-forward Production time for a unit is relatively short In-process inventory is relatively low Little direct supervision is required

Product or Line Layout

Product A Step 1 Product B Step 1 Product C Step 1 Step 2 Step 3 Step 4 Step 2 Step 3 Step 4 Step 2 Step 3 Step 4

Product Layout
Raw materials or customer
Material and/or labor Station 1 Material and/or labor Station Station 22 Material and/or labor Station Station 33 Material and/or labor Station Station 44
Finished item

Used for Repetitive or Continuous Processing

A U-Shaped Production Line



Grinding Milling

Weilding Planer






A U-Shaped Production Line

Advantage: more compact, increased communication facilitating team work, minimize the material handling

Product oriented plant layout

Advantages: Disadvantages:

Reduced material handling activities. Work In Process almost eliminated. Minimum manufacturing time. Simplification of the production planning and control systems. Tasks simplification. Labor specialization High utilization of labor and equipment Short processing time High rate of output

No flexibility in the production process. High capital investment. Every workstation is critical to the process.- The lack of personnel or shut down of a machine stops the whole process. Monotonous work. Require large capital investment Creates dull, repetitive jobs

2.Process oriented plant layout (Functional Layout)

Layout that can handle varied processing requirements Here all machines performing similar type of operations are grouped together at one location in the process layout. Thus here facilities are grouped together acc. To their functions. Personnel and equipment to perform the same function are allocated in the same area. E.g. all drilling machines are located at one place known as drilling section.

The different items have to move from one area to another one, according to the sequence of operations previously established

Process (Job Shop) Layouts

Used when the operations system must handle a wide variety of products in relatively small volumes (i.e., flexibility is necessary) Designed to facilitate processing items or providing services that present a variety of processing requirements. The layouts include departments or other functional groupings in which similar kinds of activities are performed. A manufacturing example of a process layout is the machine shop, which has separate departments for milling,grinding, drilling, and so on.

Characteristics of Process Layouts

General-purpose equipment is used Changeover is rapid Material handling equipment is flexible Operators are highly skilled Technical supervision is required Planning, scheduling and controlling functions are challenging Production time is relatively long In-process inventory is relatively high

Process Layout
Process Layout (functional)
Dept. A Dept. C Dept. E

Dept. B

Dept. D

Dept. F

Used for Intermittent processing


Process layout-

Process Layout
Dept. A D D D D Dept. B P p P p Dept. C W W W W Dept. D G G G G Dept. E L L L L Dept .F A A


Produ ct B Product A

AA Used for Intermittent processing Job Shop or Batch

Manufacturing units (b) Process or functional layout

Process Layout

222 444 Mill

22 22 2

222 111 444

3 33 33 33 33

222 Drill Grind 3333 Assembly 111 444

111 333 Lathes

Heat treat

33 33 33

111 333

1111 2222


4 44 44

Gear cutting


Manufacturing units (b) Process or functional layout

Advantages: Process layout provides the following benefits
a) Lower initial capital investment in machines and equipments. There is high degree of machine utilization, as a machine is not blocked for a single product b) The overhead costs are relatively low c) Change in output design and volume can be more easily adapted to the output of variety of products d) Breakdown of one machine does not result in complete work stoppage e) Supervision can be more effective and specialized f) There is a greater flexibility of scope for expansion.

Manufacturing units (b) Process or functional layout

Disadvantages: Product layout suffers from following drawbacks
a. Material handling costs are high due to backtracking b. More skilled Labour is required resulting in higher cost. c. Time gap or lag in production is higher d. Work in progress inventory is high needing greater storage space e. More frequent inspection is needed which results in costly supervision

Suitability: Process layout is adopted when

1. Products are not standardized 2. Quantity produced is small 3. There are frequent changes in design and style of product 4. Job shop type of work is done 5. Machines are very expensive Thus, process layout or functional layout is suitable for job order production involving non-repetitive processes and customer specifications and non standardized products, e.g. tailoring, light and heavy engineering products, made to order furniture industries, jewelry.

Comparison of product & process layout

factors Product layout Process layout

1. nature 2. Machines utilization 3. product

Sequence of facilities Similar aregp2gether Not to full capacity Better utilization

standardized 4. Processing time less 5. Material handling less

6. inventory 7. breakdown 8. Production centre 9.flexibilty 10. floor space

diversified more more Low WIP Can tolerate complex high more

High WIP Cant tolerate simple low Requires less

(c) Fixed Position or Location Layout

In this type of layout, the major product being produced is fixed at one location. Equipment Labour and components are moved to that location. All facilities are brought and arranged around one work center. This type of layout is not relevant for small scale entrepreneur. The following figure shows a fixed position layout

Stationary layout- Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed. E.g. construction of DAMS. The product, because of its size and/or weight, remains in one location and processes are brought to it.

Fixed-Position Layouts
In fixed-position layouts, the item being worked on remains stationary, and workers, materials, and equipment are moved as needed. Fixed-position layouts are used in large construction projects (buildings, power plants, and dams), shipbuilding, and production of large aircraft and space mission rockets. Fixed-position layouts are widely used for farming, firefighting, road building, home building, remodeling and repair, and drilling for oil.





Fixed Position Layout or Static Layout

e.g. Shipbuilding

Fixed Position Layout

(c) Fixed Position or Location Layout Advantages

a) It saves time and cost involved on the movement of work from one workstation to another. b) The layout is flexible as change in job design and operation sequence can be easily incorporated. c) It is more economical when several orders in different stages of progress are being executed simultaneously. d) Adjustments can be made to meet shortage of materials or absence of workers by changing the sequence of operations.

(c) Fixed Position or Location Layout

Disadvantages: Fixed position layout has the following drawbacks Production period being very long, capital investment is very heavy Very large space is required for storage of material and equipment near the product. As several operations are often carried out simultaneously, there is possibility of confusion and conflicts among different workgroups. Suitability: The fixed position layout is followed in following conditions Manufacture of bulky and heavy products such as locomotives, ships, boilers, generators, wagon building, aircraft manufacturing, etc. Construction of building, flyovers, dams. Hospital, the medicines, doctors and nurses are taken to the patient (product).

(d) Combined layout

Certain manufacturing units may require all three processes namely intermittent process (job shops), the continuous process (mass production shops) and the representative process combined process [i.e. miscellaneous shops]. In most of industries, only a product layout or process layout or fixed location layout does not exist. Thus, in manufacturing concerns where several products are produced in repeated numbers with no likelihood of continuous production, combined layout is followed. Generally, a combination of the product and process layout or other combination are found, in practice, e.g. for industries involving the fabrication of parts and assembly, fabrication tends to employ the process layout, while the assembly areas often employ the product layout. In tablet, manufacturing plant, the machinery manufacturing tablet is arranged on the product line principle, but ancillary services such as Heating, Ventilation and Air-Conditioning (HVAC) heating, the power house, the water treatment plant etc. are arranged on a functional basis.

Cellular Manufacturing (CM) Layouts

Cellular manufacturing is a type of layout in which machines are grouped into what is referred to as a cell. Groupings are determined by the operations needed to perform work for a set of similar items, or part families that require similar processing.

Cellular Manufacturing (CM) Layouts

These relate to the grouping of equipment and include faster processing time, less material handling, less work-in-process inventory, and reduced setup time. Used when the operations system must handle a moderate variety of products in moderate volumes

Cellular Plant Layout

AKA Group Technology Each cell manufactures products belonging to a single family. Cells are autonomous manufacturing units which can produce finished parts. Commonly applied to machined parts. Often single operators supervising CNC machines in a cell, with robots for materials handling. Productivity and quality maximised. Throughput times and work in progress kept to a minimum. Flexible. Suited to products in batches and where design changes often occur. L L L G







Cellular Manufacturing Layout

-1111 Lathe Mill Drill Heat treat Heat treat Heat treat Drill Gear -1111 cut Grind - 2222




Grind - 3333 Gear - 4444 cut








Cellular Layout
Process (Functional) Layout
A cluster or cell

Group (Cellular) Layout

Similar resources placed together

Resources to produce similar products placed together

P-Q Analysis


Product Layouts Fixed Position Layouts

Mixed Layouts

Process Layouts

Number of Different Products

Basic Layout Formats

Group Technology Layout
Similar to cellular layout
Part Family W Part Family X Part Family Z

Assemble Y,W
Part Family Y

Assemble X,Z

Final Product


Cellular Manufacturing Layout or Group Technology Layout

Process vs. Cellular Layouts

Number of moves between departments Travel distances Travel paths Job waiting times Amount of work in process Supervision difficulty Scheduling complexity Equipment utilization many longer variable greater higher higher higher Lower?

few shorter fixed shorter lower lower lower




Hybrid (mixed) Layouts

Actually, most manufacturing facilities use a combination of layout types. An example of a hybrid layout is where departments are arranged according to the types of processes but the products flow through on a product layout.

Hybrid (mixed) Layouts

For instance, supermarket layouts are fundamentally of a process nature, and however we find most use fixed-path material-handling devices such as rollertype conveyors both in the stockroom and at checkouts, and belt-type conveyors at the cash registers. Hospitals also use the basic process arrangement, although frequently patient care involves more of a fixed-position approach, in which nurses, doctors, medicines, and special equipment are brought to the patient.

Combined Layout or Hybrid Layout for Gear Manufacturing


Factory building: The nature and size of the building determines the floor space available for layout. While designing the special requirements, e.g. air conditioning, dust control, humidity control etc. must be kept in mind. Nature of product: product layout is suitable for uniform products whereas process layout is more appropriate for custom-made products. Production process: In assembly line industries, product layout is better. In job order or intermittent manufacturing on the other hand, process layout is desirable. Type of machinery: General purpose machines are often arranged as per process layout while special purpose machines are arranged according to product layout

Repairs and maintenance: machines should be so arranged that adequate space is available between them for movement of equipment and people required for repairing the machines. Human needs: Adequate arrangement should be made for cloakroom, washroom, lockers, drinking water, toilets and other employee facilities, proper provision should be made for disposal of effluents, if any. Plant environment: Heat, light, noise, ventilation and other aspects should be duly considered, e.g. paint shops and plating section should be located in another hall so that dangerous fumes can be removed through proper ventilation etc. Adequate safety arrangement should also be made. Thus, the layout should be conducive to health and safety of employees. It should ensure free and efficient flow of men and materials. Future expansion and diversification may also be considered while planning factory layout.