DR MAHADEO GHADGE

mahadeopg@gmail.com

 The

performance of an
organization is considerably
affected by its location.
Location decision affect, most of the
fixed costs as well as variable costs.
Therefore, the efficiency,
effectiveness, productivity &
profitability of the facility are also
affected by the location decision.

German Economist
Theory consider major two
important factor affecting
industrial location
Primary Factor (Regional factors)
Secondary factor (agglomerative
factor)
Weber

TRANSPORTATION COST
LABOUR COST

TRANSPORTATION COST
Distance to be covered
The weight to be transported
Weber classified raw material into two
broad categories
1-Localised raw material
2-ubiqities material

Localized raw material available in specific

region . For example Cotton , Sugarcane ,
Jute
Ubiquities material Which are avaiable
every where for example .water ,sand
Localized material further classified as
Pure material- which do not lose the weight
in process
Gross raw material-which lose weight in
process , for example aromatic compound

 Webers

theory assume that

Certain labour centre's where cheap
& skilled labour available (Unlimited
supply of workforce)
If labour cost is not significant then
transportation cost play critical role in
location decision

 Consider

the possibility of more

than one location for an industry
For example
Paper Industry
Plant for pulp process near forest
Paper manufacturing unit, near
market

 Unrealistic

& oversimplifiedTransportation cost other factor such

as road quality of goods are not
considered
Unlimited labour supply that is not
possible
Selection of factor is arbitrary
Climatic condition, government policy
are not considered

 Availability

of raw material

Market
Labour

supply
Transport & communication
Fuel & power
Government policy
Climatic condition

What Is Layout Planning?

Layout planning is determining the best

physical arrangement of resources within a
facility

Why is layout planning important?

Eliminates unnecessary costs for space and

materials handling
Reduces work-in-process inventory
Produces goods and services faster
Reduces distances that workers must travel
in the workplace
Improves communication and morale
Increases retail sales
Improves brand image

Types of Layouts

Process layouts: Group similar resources together

Product layouts: Designed to produce a specific product,
or a small number of products efficiently
Hybrid layouts: Combine aspects of both process and
product layouts
Example: cellular layout
Fixed-Position layouts: Product is too large to move
Examples: building construction, shipyard
Resources must be brought to where they are needed

Process and Product Layouts

Process Layouts

Used in project and batch manufacturing

(intermittent processes)
Also used in department stores, offices,
hospitals, and universities
Able to make or sell a variety of products
Use general purpose resources
Less automation than in product layouts
Material handling costs per unit are higher than
in product layouts
Scheduling production is more complex than in
product layouts

Process Layout Example

Block layout for a sports medicine clinic

A
Radiology

B
Laboratory

C
Lobby &
Waiting

D
Examining
Rooms

E
Surgery &
Recovery

F
Physical
Therapy

Product Layouts

Used in assembly lines and continuous manufacturing

(repetitive processes)
A cafeteria line is a product layout
In manufacturing, product layouts are used to produce
one product, or a small group of products, efficiently
Uses special purpose resources
More automation than in process layoutsMaterial
handling costs per unit are lower than in process
layouts
Scheduling production is simpler than in process
layouts

FACTOR AFFECTING LAYOUT

Nature of the productHeavy product stationary layout; light product-line
layout
Volume of productStandard product mass production-line layout; variable
product variable quantity functional layout
Type of industry process
1-intermittent functional layout
2- continuous- line layout
Types of production
1-job order 2- Batch production 3-mass production

Types of machine
Heavy machinery stationary layout;
Human factor &working condition
Layout consider safety ,comforts rest
rooms

OBJECTIVE OF LAYOUT

Minimization of material handling cost

Savings in shop floor space
Increased in output & reduced work in process
Safety in working & reduced hazards
Increase productivity & minimum waste
Smooth flow of processes
Reducing delays, manufacturing time & cutting
down maintenance cost
Overall integration of men, material, machines
& supporting activities.

TYPES OF LAYOUTS
Layout manufacturing system is classified into
following categories

Product or Line Layout

For example -automobile

Process or Functional Layout

For example bank , hospital ,workshop
Project or Fixed Position Layout
For example- aero plane manufacturing

Material Handling
Material handling is the function of
moving the right material to the right
place in the right time, in the right
amount, in sequence, and in the right
condition to minimize production cost.

Objectives of Material Handling

To reduce unit costs of production.

Maintain or improve product quality
Reduce damage of materials
Promote safety and improve working
condition
Enhanced productivity
Better use of material handling tools
Well-organized store keeping
Lower investment in work in process

Overview of Material Handling Equipment

Material handling equipment includes:
Transport Equipment: industrial trucks,
conveyors, cranes and hoists.
Storage Systems: bulk storage, rack
systems, shelving and bins, drawer
storage, automated storage systems.
Identification and Tracking systems

Example of Mass production

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Hyundai Assembly Line

25

Questions Before Selecting A

Process
Variety of products
and services
How much
Flexibility of the process; volume,
mix, technology and design
What type and degree
Volume
Expected output

Job Shop

Batch

Continuou
Repetitive
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Product Process Matrix

Dimension

Job Shop

Batch

Repetitive

Continuous

Job variety

Very High

Moderate

Low

Very low

Process
flexibility

Very High

Moderate

Low

Very low

Unit cost

Very High

Moderate

Low

Very low

Volume of
output

Very low

Low

High

Very high

30

Variety, Flexibility, & Volume

Product
Variety
Equipment
flexibility
Low
Volume
Moderate
Volume
High
Volume
Very high
Volume

High

Moderate

Low

Very Low

High

Moderate

Low

Very Low

Job
Shop
Batch
Repetitive
assembly
Continuous
Flow

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Product Process Matrix

Process Type

Job Shop

Batch

High variety

Low variety

Appliance
repair
Emergency
room
Commercial
bakery

Classroom
Lecture

Repetitive

Automotive
assembly
Automatic
carwash

Continuous
(flow)

Oil refinery
Water
purification

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Product-Process Matrix
Few
High
Low
Multiple Major Volume,
Volume Products,Products, High
One of a
Low
Higher StandardKind
Volume Volume ization

Job
Shop
Batch

FlexibilityQuality

Book
Writing
Movie
Theaters

Assembly
Line

Automobile
Assembly

Continuous
Flow
Flexibility-Quality

Sugar
Refinery DependabilityCost
Dependability-Cost

33

Process Layout Example

Block layout for a sports medicine clinic

A
Radiology

B
Laboratory

C
Lobby &
Waiting

D
Examining
Rooms

E
Surgery &
Recovery

F
Physical
Therapy

Process Layout
Milling
Assembly
& Test

Grinding

Drilling

Plating

Process Layout - work travels

to dedicated process centers

35

Process Layout

222
444

Mill

222
111
444

222

Drill

Grind

3333

1111 2222

Assembly

111 333
111
333 Lathes

Heat
treat

111

Gear
cutting

111
444

36

Cellular Layouts

Cellular Manufacturing
Layout in which machines are grouped into a cell that
can process items that have similar processing
requirements. A product layout is visible inside each cell.

Group Technology

The grouping into part families of items with similar

design or manufacturing characteristics. Each cell is
assigned a family for production. This limits the
production variability inside cells, hence allowing for a
product layout.

37

A Group of Parts

Similar manufacturing characters

38

Basic product family and machine data

Product families

7
Machines

Machines and product families reorganised into cells

Product families

Cell A

1
6
3

X
X

X
X
X

X
Cell B

Machines

Cell C

Process vs. Cellular Layouts

Dimension

Process

Cellular

Number of moves
between departments

many

few

Travel distances

longer

shorter

Travel paths

variable

fixed

Job waiting times

greater

shorter

Amount of work in
process

higher

lower

Supervision difficulty

higher

lower

Scheduling complexity

higher

lower

Equipment utilization

Lower?

Higher?

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-1111

Lathe

Mill

Drill

Heat
treat

Gear
-1111
cut
Grind - 2222

222222222

Mill

Drill

Heat
treat

3333333333

Lathe

Mill

Heat
treat

Grind - 3333

Drill

Gear - 4444
cut

44444444444444

Mill

Assembly

Cellular Manufacturing Layout

47

Basic Layout Formats

Group Technology Layout

Similar to cellular layout

Part Family W

Part Family X

Assemble Y,W

Part Family Z

Assemble X,Z

Part Family Y

Final Product

Fixed Position Layout

e.g. Shipbuilding
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