Introduction Of Plant Layout Definition Of Plant Layout Objectives Of Plant Layout Importance Of Plant Layout Types Of Plant Layout

Advantages & Drawbacks Of Plant Layout Conclusion

INTRODUCTION OF PALNT LAYOUT

Plant layout planning includes decisions regarding the physical allocation of the economic activity centers in a facility.
An economic activity center is any

entity occupying space. The objective of plant layout planning is a more effective work flow at the facility, allowing workers and equipment being more productive.

DEFINITION OF PLANT LAYOUT

Plant layout is the overall arrangement of the machine tools,handling equipment,storerooms mid stockrooms,tools cribs,die racks & other various accessories required for facilitating product in a factory

OBJECTIVES OF PLANT LAYOUT

The main objective consists of organizing equipment and working areas in the most efficient way, and at the same time satisfactory and safe for the personnel doing the work. Sense of Unity
The feeling of being a unit pursuing the same objective.

Minimum Movement of people, material and

resources. Safety
In the movement of materials and personnel work flow.

Flexibility
In designing the plant layout taking into account the

changes over short and medium terms in the production process and manufacturing volumes.

OBJECTIVES OF PLANT LAYOUT

These main objectives are reached through the attainment of the following facts: Congestion reduction. 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. Moral and workers satisfaction increase. Reduction on delays and manufacturing time, as well as increase in production capacity. All these factors will not be reached simultaneosly, so the best solution will be a balance among them.

IMPORTANCE OF PLANT LAYOUT

Utilization of area. Save handling cost. Remove bottlenecks. Quick execution of orders. Better quality control. Improved production control. Limited investment. Better use of labour. Improved supervision.

TYPES OF PLANT LAYOUT

The production process normally determines the type of plant layout to be applied to the facility:
Fixed position plant layout

Product stays and resources move to it.

Product oriented plant layout

Machinery and Materials are placed following the

product path.
Process oriented plant layout (Functional Layout).

Machinery is placed according to what they do and

materials go to them.
Cell Layout

Hybrid Layout that tries to take advantage of

different layouts types.

TYPES OF PLANT LAYOUT

The following are the types of plant layout/ Product/Line Layout, Process/Functional Layout, Combined Layout, Static/Stationery Layout, Cellular Layout. Process oriented plant layout
Detailed layout
Equipment and machinery layout within each area or department,

getting a detailed layout of installations and all elements. There could appear some issues like scales, elevators, columns, floor resistance, roof height, etc. not considered in previous stages, that could make necessary the review of the solution.

Product oriented plant layout

Advantages: Reduced material handling activities. Work In Process almost eliminated. Minimum manufacturing time. Simplification of the production planning and control systems. Tasks simplification. Disadvantages: No flexibility in the production process. Low flexibility in the manufacturing times. 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.

Process Layout

Process layout: It is also called functional layout. All machines performing similar type of operations are grouped at one location in the process layout e.g. all lathes, milling machines, cutting machines etc in the engineering shop will be clustered in their like groups. Thus all forging will be done in one area and all the lathes will be placed in another area. In this layout, several products may share a machine to make its full use. The sequential arrangement of the machine group is generally, but not necessarily made on the basis of labor operations. In this type of layout the process rather than the product has a dominating role. 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. This type of process is more suitable to job order type of production. In such production the operation differs from product to product. So, it is desirable to arrange the machines on the basis of process rather than on the products. 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. 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. 2) It facilitates the flexibility in production. It is more flexible than a line 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. 3) Like product layout, the break down of one machine does not interrupt the entire production flow. 4) Specialization in supervision becomes possible. 5) Individual incentive schemes can be developed. Disadvantages: The following are the main disadvantages of the process layout: 1) Due to lack of straight line sequence of production, it is impossible to maintain the line balancing in production. So the problems of bottleneck and waiting and idle capacity arise. 2) The cost of material handling increases due to long routing and back tracking between the processes. 3) The processing time is prolonged which reduces the inventory turnover and increase the investments in inventories. 4) The inspection cost increases. Due to frequent changes in the machine set-up inspection is required at each stage of the process. 5) The cost of supervision increase due to specialist supervisors and more number of supervisors are required at each process unit. 6) The production planning and control becomes difficult due to complexities arising in routing, scheduling, dispatching and follow up. 7) It is not possible to implement the group inventive schemes on the basis of quantity of the products manufacturing 8) More space is required for internal storing, reservoir of materials and provision for the expansion of the particular process section.

PLANT LOCATION OPERATIONS MANAGEMENT Plant location may be understood as the function of determining where the plant should be located for maximum operating economy and effectiveness .The selection of a place for locating a plant is one of the problems, perhaps the most important , which is faced by an entrepreneur while launching a new enterprise .A selection on pure economic considerations will ensure an easy and regular supply of raw material , labor forces ,efficient plant layout, proper utilization of production capacity and reduced cost of production .An ideal location may not, by itself, guarantee success; but it certainly contributes to the smooth and efficient working of an organization .A bad location ,on the other hand, is a severe handicap for any enterprise and it finally bankrupts it .It is, therefore, very essential that utmost care should be exercised in the initial stages to select a proper place. Once a mistake is made in locating a plant, it becomes extremely difficult and costly to correct it, specially where large plants are concerned .Cases are not wanting where mistakes were committed and wrong places selected. M/s. Samrat Thermo Plastic Industries, for example, are the manufacturers of mixers and grinders ,located in Raipur district in Madhya Pradesh. Seventy-five percent of the raw materials required by them had to be bought from Mumbai, and 75%of the finished products had to be marketed in Pune and Mumbai. To overcome this difficulty , it was decided to shift the entire plant to Pune. Similarly, Associated Breweries & Distilleries first set up its plant for brewing beer at Goa, though Mumbai is its main consuming centre The plant is now shifted to Vashi, near Mumbai. This enabled the firm to save considerably on transportation costs .Since the shifting to, Mumbai , the firm has had a steady run of success. The difficulties experienced by the proprietors and the cost of shifting the plant can easily be imagined. The need for the selection of the location may arise under any following conditions: (a) When the business is newly started; (b) The existing business unit has outgrown its original facilities and expansion is not possible; hence a new location has to be found; (c) The volume of business or the extent of market necessitates the establishment of branches; (d) A lease expires and the landlord does not renew the lease; and (e) Other social or economic reasons; for instance , inadequate labor supply, shifting of the market etc. Whatever the reasons, the selection of the location has to be made after considering all the economic factors which have a bearing on it.It may be impossible to find a place which abounds in all the facilities that are required to start a factory; but a search has to be made for a place which enjoys as many facilities as possible. The guiding principle in the search should be for a place where the cost of the raw material and of fabrication, plus the cost of the marketing of the finished product, will be minimum.

Product Layout

Product layout:

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

ADVANTAGES OF GOOD PLANT LAYOUT

Adequate space for free movement of workers. Safety to worker. Maximum flexibility. Effective production control. Convenience in storing. Adequate gangway space. Minimum materials handling. Minimum damage & spoilage of material

DRAWBACKS OF A POOR PLANT LAYOUT

Poor lighting ,ventilation & space for movement of workers. Low production & under utilization of plant capacity. Inadequate safety provisions for workers. Absence of flexibility in the plant production facility. Inadequate storage facilities. Uneconomical materials handling.

(iii)Improving the Layout. Layout needs constant attention from the management. It has to be reviewed and revised to correct any deficiencies which may have crept into the plant and which were originally unnoticed by the layout engineer. Even if the plant was perfectly laid initially, subsequent developments in materials, machines and methods might render the layout deficient. Generally speaking, the limitations in a layout go unchecked for two reasons: 1.The evils of a poor layout are a hidden cost not revealed even by the best accounting method and 2.Even if the limitations are revealed, the management may be unwilling to initiate remedial steps because there is a built-in adjustability to any circumstance in all human beings; and the management is no exception What is needed is a progressive outlook and courage on the part of the management to rectify defects.

Reason for Revision Generally speaking, the following developments necessitate a revision of the existing layout: 1.Expansion; 2.Technological advancements and 3.Improvement in the layout. The reasons for revision are elaborated in the paragraphs that follow: (i)Expansion: Expansion is a natural feature of any industrial establishment. A plant may expand in any one of the following ways: (a)Increase in the output of the existing product: (b)Introduction of a new product in the same line and (c)Diversification of the lines of activity. In order to cater to the ever-increasing demand of the product, the plant may have to install a few more machines or add machines of new designs and high capacity.

A good plant layout involves not only the designing and installing of the layout for the first time, but also encompasses revision of the existing layout as well. The best layout becomes obsolete over a period of time. When a plant has remained unchanged for a number of years, it can be assumed that the layout is obsolete in some way. Revisions, ranging from minor alterations to a complete dismantling of the existing structure and installation of new layout, become necessary from time to time in order to increase and maintain the operating efficiency of the plant.

CONCLUSION

Thus in the end we can conclude by saying that poor layout results in increasing costs more accordingly & accident hazards increase ,while plant output decreases ,since such outcomes are undesirable good plant layout is obviously very important & should be introduced. Sophisticated forecasting is

essential for capital budgeting decisions Quantitative forecasting uses historical data to establish relationships and trends which can be projected into the future Qualitative forecasting uses experience and judgment to establish future behaviours Forecasts can be made by either thetop down or bottom up routes.

FORECASTING METHODS & PRICE/POLICY

Introduction Forecasting Forecasting Methods Price Policy

FORECASTING METHOD

Qualitive MethodsDelphi Method Market Research Product Life cycle analogy

Expert Judgement

Quantities Methods Time Series Forecasting Method Moving Averages Exponential Smoothing Mathematical Models Box-Jenkins Methods Average Trend Seasonal Influence Cyclical Movement Random Error

 Forecasting

is the establishment of future expectations by the analysis of past data, or the formation of opinions. Forecasting is an essential element of capital budgeting

Quantitative Forecasting
Quantitative: Regression with related variable Data set of Sales as related to both time and the number of households
HISTORICAL DATA YEAR 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

HOUSEHOLDS
815 927 1020 987 1213 1149 1027 1324 1400 1295 1348 1422

SALES
2109 2530 2287 3194 3785 3372 3698 3908 3725 4129 4532 4487

Quantitative Forecasting

Quantitative: Sales plotted related to households.

SalesUnits Related to Number of Households
5000

Sales Units

4000 3000 Sales 2000 1000 0 0 500 1000 1500 Numbe r of House holds

Short Term Forecasting: Needs and Uses

Scheduling existing resources

How many employees do we need and when? How much product should we make in anticipation of

demand?

Acquiring additional resources

When are we going to run out of capacity? How many more people will we need? How large will our back-orders be?

Determining what resources are needed

What kind of machines will we require? Which services are growing in demand? declining? What kind of people should we be hiring?

PRICE POLICY
Cost is fact,Price is policy & Value is concept Price is policy & guess work.

Business Forecasting
Used to try to predict the future Uses two main methods: Qualitative seeking opinions on which to base decision making
Consumer panels, focus groups, etc

Quantitative using statistical data to help inform decision making

Identifying trends Moving averages seasonal, cyclical, random Extrapolation simple Costs and Benefits of Forecasting:
Benefits: Aids decision making Informs planning and resource allocation decisions If data is of high quality, can be accurate

Forecasting Horizon

Long Term
5+ years into the future R&D, plant location, product planning Principally judgement-based

Medium Term
1 season to 2 years Aggregate planning, capacity planning, sales forecasts Mixture of quantitative methods and judgement

Short Term
1 day to 1 year, less than 1 season Demand forecasting, staffing levels, purchasing, inventory

levels Quantitative methods