Unit No5plantloaction PDF

Industrial Engineering unit 5 12-Sep-18
PLANT LOCATION
Plant location or the facilities location problem is an important strategic level
decision making for an organisation.
One of the key features of a conversion process (manufacturing system) is the efficiency
with which the products (services) are transferred to the customers.
This fact will include the determination of where to place the plant or facility.
The selection of location is a key-decision as large investment is made in building
plant and machinery.
It is not advisable or not possible to change the location very often.
An improper location of plant may lead to waste of all the investments made in building
and machinery, equipment.
Before a location for a plant is selected, long range forecasts should be made anticipating
future needs of the company.
The plant location should be based on the company’s expansion plan and policy,
diversification plan for the products, changing market conditions, the changing sources
of raw materials and many other factors that influence the choice of the location decision.
The purpose of the location study is to find an optimum location one that will result in the
greatest advantage to the organization.
Prepared by R.S.Pokale 1
NEED FOR SELECTING A SUITABLE LOCATION

The need for selecting a suitable location arises because of two situations.
1. When starting a new factory
2. In case of existing factory
The existing firms will seek new locations in order to expand the capacity or to place the
existing facilities. The increase in demand for the company’s products can give rise to
following decisions:
1. Whether to expand the existing capacity and facilities.

2. Whether to look for new locations for additional facilities.
3. Whether to close down existing facilities to take advantage of some new locations.
Reasons for Replacement of existing facilities to New locations:

1. Changes in location of demand.
2. Changes in availability of materials.
3. Changes in availability of transport.
4. Changes in the cost and /or supply of labour.
5. Changes in regulations and law.
6. Changes in availability of raw materials.
7. Changes in policy of industries to relocate on which the firm is dependent.
FACTORS INFLUENCING PLANT LOCATION

Following are the general factors required for location of plant in case of all
types of organisations.
CONTROLLABLE FACTORS
Social Proximity to
1. Proximity to markets Infrastructure markets
Supply of
2. Supply of materials materials
Community
3. Transportation facilities and labour
attitude.
4. Infrastructure availability Transportatio
n facilities
5. Labour and wages
Supporting
UNCONTROLLABLE industries
and services
FACTORS Infrastructur
e availability
6. Law and taxation
Suitability
7. Suitability of land and climate of land and
Labour and
climate Law and wages
8. Supporting industries and services. taxation
9. Community and labour attitude.

10. Social Infrastructure.
1. Proximity to markets: Every company is expected to serve its customers by providing

goods and services at the time needed and at reasonable price .organizations may choose to
locate facilities close to the market or away from the market depending upon the product.
When the buyers for the product are concentrated, it is advisable to locate the facilities
close to the market. Nearness to the market ensures a consistent supply of goods to
customers and reduces the cost of transportation.
Locating nearer to the market is preferred if
• The products are delicate and susceptible to spoilage.
• After sales services are promptly required very often.
• Transportation cost is high and increase the cost significantly.
• Shelf life of the product is low.
2. Supply of raw material: It is essential for the organization to get raw material in
right qualities and time in order to have an uninterrupted production. This factor
becomes very important if the materials are perishable and cost of transportation is very
high. Nearness to raw material is important in case of industries such as sugar, cement,
jute and cotton textiles.
3. Transportation facilities: Speedy transport facilities ensure timely supply of raw

materials to the company and finished goods to the customers. The transport facility is a
prerequisite for the location of the plant. The choice of transport method and hence the
location will depend on relative costs, convenience, and suitability.
4. Infrastructure availability: The basic infrastructure facilities like power, water and
waste disposal, etc., become the prominent factors in deciding the location. Certain
types of industries are power hungry e.g., aluminum and steel and they should be located
close to the power station or location where uninterrupted power supply is assured
throughout the year. The non-availability of power may become a survival problem for such
industries. Process industries like paper, chemical, cement, etc., require continuous
supply of water in large amount and good quality, and mineral content of water becomes
an important factor. A waste disposal facility for process industries is an important factor,
which influences the plant location.
5. Labour and wages: The problem of securing adequate number of labour and with
skills specific is a factor to be considered both at territorial as well as at community level
during plant location. Importing labour is usually costly and involve administrative
problem.
6. Law and taxation

The policies of the state governments and local bodies concerning labour laws,
building codes, safety, etc., are the factors that demand attention.
In order to have a balanced regional growth of industries, both central and state
governments in our country offer the package of incentives to entrepreneurs in particular
locations. The incentive package may be in the form of exemption from a sales tax and
excise duties for a specific period, soft loan from financial institutions, subsidy in
electricity charges and investment subsidy. Some of these incentives may tempt to
locate the plant to avail these facilities offered.
7.Suitability of land and climate

The geology of the area needs to be considered together with climatic conditions (humidity,
temperature). Climates greatly influence human efficiency and behavior. Some
industries require specific climatic conditions e.g., textile mill will require humidity.
8.Supporting industries and services.
Now a day the manufacturing organization will not make all the components and parts by
itself and it subcontracts the work to vendors. So, the source of supply of component
parts will be the one of the factors that influences the location.
The various services like communications, banking services professional consultancy

services and other civil amenities services will play a vital role in selection of a
location.
9. Community and labour attitude.

Community attitude towards their work and towards the prospective industries can make
or mar the industry. Community attitudes towards supporting trade union activities are
important criteria. Facility location in specific location is not desirable even though all
factors are favoring because of labour attitude towards management, which brings very
often the strikes and lockouts.
10. Social Infrastructure.
Availability of community facilities like housing facilities, Recreational facilities,
Educational facilities and Medical facilities are to be considered while selecting a
location.
PLANT LAYOUT
Plant layout refers to the physical arrangement of production facilities. It is the

configuration of departments, work centers and equipment in the conversion process. It is a
floor plan of the physical facilities, which are used in production.
According to Moore “Plant layout is a plan of an optimum arrangement of facilities
including personnel, operating equipment, storage space, material handling equipment
and all other supporting services along with the design of best structure to contain all
these facilities”
OBJECTIVES OF PLANT LAYOUT

The primary goal of the plant layout is to maximize the profit by arrangement of all the
plant facilities to the best advantage of total manufacturing of the product.
The objectives of plant layout are:
1. Streamline the flow of materials through the plant.
2. Facilitate the manufacturing process.
3. Maintain high turnover of in-process inventory.
4. Minimize materials handling and cost.
5. Effective utilization of men, equipment and space.
6. Make effective utilization of cubic space.
7. Flexibility of manufacturing operations and arrangements.
8. Provide for employee convenience, safety and comfort.
9. Minimize investment in equipment.
10. Minimize overall production time.
11. Maintain flexibility of arrangement and operation.
12. Facilitate the organizational structure.
Layouts can be classified into the following five categories:
1. Process layout
2. Product layout
3. Combination layout
4. Fixed position layout
5. Group layout
1. Process layout
Process layout is recommended for batch production. All machines performing similar type
of operations are grouped at one location in the process layout e.g., all lathes, milling
machines, etc. are grouped in the shop will be clustered in like groups.
Thus, in process layout the arrangement of facilities are grouped together according to their
functions. A typical process layout is shown in Fig. The flow paths of material through the
facilities from one functional area to another vary from product to product. Usually the
paths are long and there will be possibility of backtracking.
PRODUCT LAYOUT
In this type of layout, machines and auxiliary services are located according to
the processing sequence of the product. If the volume of production of one or
more products is large, the facilities can be arranged to achieve efficient flow of
materials and lower cost per unit. Special purpose machines are used which
perform the required function quickly and reliably.
COMBINATION LAYOUT
A combination of process and product layouts combines the advantages of both

types of layouts. A combination layout is possible where an item is being made
in different types and sizes. Here machinery is arranged in a process layout
but the process grouping is then arranged in a sequence to manufacture
various types and sizes of products. It is to be noted that the sequence of
operations remains same with the variety of products and sizes.
If there are m-machines and n-components, in a group layout (Group-Technology
Layout), the m-machines and n-components will be divided into distinct number of
machine-component cells (group) such that all the components assigned to a cell are
almost processed within that cell itself. Here, the objective is to minimize the intercell
movements. Figure shows a combination type of layout for manufacturing
different sized gears.
FIXED POSITION LAYOUT
This is also called the project type of layout. In this type of 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.
TYPES OF MATERIAL FLOW LINES

The straight-line pattern is normally used when products are produced in large
quantities and the number of steps required for their production is a few. Moreover, the
shipping and receiving sections are on the opposite sides. Figure shows the arrangement
of machines in a straight line pattern.
U-Shaped pattern
U-Shaped patterns are often used when it is necessary
to keep the beginning (receiving) and end (shipping)
of the line on the same side and the same end of the plant.
U-Shaped patterns are also preferred in just-in-time layouts.
Workers are generally placed at the centre of the U-Shape.
From there they can monitor more than one machine at a time.
.
S-Shaped patterns are

used for long assembly processes that have to fit in the same
area and also when it is necessary to keep the receiving And shipping ends on the
opposite sides.
W-Shaped pattern, like the S-Shaped pattern used for long assembly processes, which to
fit in the same area. When it is necessary to keep the receiving and shipping ends on the
same side, the W-Shaped pattern is preferred.
Tools and Techniques of Plant layout
The following tools and techniques are used to analyse the data.
1. Process chart (Operation Process charts, Flow Process charts)
2. Travel chart
3. Diagrams (Flow diagram and string diagram)
4. REL( Relationship Chart)
5. Templates
6. Scaled Models
Travel Chart
The flow of material between functional areas of the plant is recorded on a From –To
chart. It records the distance and frequency of movements between various pairs of
departments. This chart is used to determine the degree of closeness between the
departments. It forms the basis for layout design that seeks to minimise the total material
handling costs.
It is a useful tool for movement analysis. It is helpful to locate the activities and
backtracking. Useful for comparing alternative flows. Travel chart Can be easily
computerised as quantitative data is involved.
A Travel Chart is a simple table that is useful where there are multiple (and possibly
irregular) movement between places. It is a variation on the Check Sheet,
indicating movements from and to any combination of a given set of locations.
REL (RELATIONSHIP CHART)

The relative importance of having one department near another is displayed in relationship
chart. Robert Muther developed the REL chart.Each Diamond –shaped cell in the chart
shows the relationship if any between two functional plant areas. Two entries come into the
cells. The Top entry is a letter that indicates the degree of closeness of the relationship and
the number below represents the important reason for relationship.
The requirements of closeness
are expressed on a scale.
Pair wise interdepartmental
Closeness requirement ratings
are used to develop a suitable
layout which satisfies as many
pair wise relationship as possible
and to the extent possible.
SYSTEMATIC LAYOUT PLANNING(SLP)

Systematic layout Planning is an organized approach developed by RICHARD
MUTHER(1973) which has got maximum practical applications in determining the best
layout plan.
SLP Consists of the following Four Phases.
Phase I : Plant Location – Determining the plant site to be laid out.
Phase II : General overall Layout : Establishing the general arrangement of the area to be
laid out from the basic flow patterns.
Phase III: Detailed Layout Plans: Establishing the detailed actual placement of each
specific machine or equipment.
Phase IV: Installation : Executing the layout plan.
Following Five Key Factors are in this layout design Process.
P- Product ( What is to be produced.)
Q- Quantity ( How much of each item will be produced.)
R- Routing ( How will each item be produced.)
S- Services or Supporting activities ( What will be support services for Production.)
T-Time ( When will each item to be produced.)
SLP Procedure is based directly on three fundamentals
1.Relationship : the relative degree of closeness desired or required among things.
2. Space : the amount, kind and shape or configuration of the things being laid out.
3. Adjustments : the arrangement of things in a realistic best fit.
Steps involved in SLP Procedure

1. Definition of objectives and Scope of
layout.
2. Input Data.
The primary planning step of SLP is the
five key input factors (P,Q,R,S,& T) an
analysis of P & Q individually and in Relationships
their relationship is specially important.
3. Flow of material
This determines the most effective
process or routing by selecting the
operations and sequences that will Space
optimally produce P & Q in the
specified time period (T).
4. Activity Relationships:
The flow of materials is a common basis Adjustments
for layout arrangement. But ,in practical
situations, all the support services must
be integrated with the layout to ensure
productive and effective activities. This
can be carried out with the help of The
Activity Relationships Diagram(REL).
5. Flow or Activity Relationship Diagram

Flow or Activity Relationship Diagram
relates the various activities of department
,geographically with their relative closeness
and intensity to each other without any regard
to actual space required. The use of operation
symbols ,identification numbers or letters
for activities and number of lines is made to
express the relationship and frequency of
Closeness value between the two activities.
6.Space Determination
The space or area of each piece of machinery,
equipment and service facilities required for
producing the products is determined. This can
be carried out by considering standard space
required for each machine multiplied by
number of machines .
7. Space Relationship diagram :
The area to be allowed for each activity is
represented in the flow or activity relationship
diagram, resulting in the space relationship
diagram. This is a rough layout plan.
8. Adjusting the Diagram :

The space relationship diagram represents a
theoretically ideal arrangement and as it is
cannot be used. it is adjusted and
manipulated to include modifying
Consideration such as material handling
methods, storage facilities, site conditions
and surrounding personnel requirements,
utilities.
9.Analysis for optimization.

When a certain criterion is decided for layout
planning, optimization analysis is made
such that the relative location areas for
activities involved is optimized or satisfied.
10. Evaluating and determining the best

Layout .
The procedure is set out for selecting the
best alternative, and a scale model or virtual
reality model of the selected layout may be
used to aid visualization of the selected layout.
Factor analysis and cost comparison method
is used.
COMPUTER AIDED WORKPLACE DESIGN

The major advance in layout planning is computerised analysis.
Computer programmers have been developed to assist the layout analyst in
identifying layouts that appear to meet some specified criterion.
The user can specify a matrix of the anticipated number of trips between
departments.
Computerised layout analysis increases the speed and accuracy of evaluation of
various alternatives.
Various Computer Packages available for Plant layout analysis are
CRAFT(Computerised Relative allocation of facilities.),

CORELAP( Computerised Relationship Layout Planning),
ALDEP (Automated Layout design Programme),
PLANET( Plant Layout Analysis and Evaluation Techniques)
COFAD( Computerised facilities Design)
FLAG( Facility Layout Algorithm using Graphics)
Computerised Techniques for layout analysis.

1. CRAFT (Computerised Relative allocation of facilities)
Developed by Gordon Armour and Elwood Buffa.
For this technique input data includes material flow per unit time, cost
per unit per distance moved and space requirments in the form of
an initial layout.
It is an improvement algorithm, uses heuristic(experimental and especially
trial-and-error) method which minimises cost.
Limitations : Maximum number of departments = 40
CRAFT considers exchange between locations repeatedly until no

further significant costs reductions are possible. The programme
output is in the form of facilities in a basic rectangular form that is
close to the lowest cost layout.
CRAFT programme works on the assumption that movement between

departments occur along straight line between the centroids of the
department. It assumes that costs vary linearly with distance.
2. CORELAP (Computerized Relationship Layout Planning)

uses the A,E,I,O,U closeness ratings, space
requirements and maximum building length to
width ratio to develop a layout.
The inputs are no. of departments and area
of department, Relationship chart,Weightages
for REL chart, Locations of pre-assigned
department on layout, maximum
building length to width ratio.
3.ALDEP
Automated Layout design Programme requires input data for building
specification and preference matrix of location relationship. it has the
capability of laying out up to 63 departments. The Programme can
deal with multi-storey facilities.
MANUFACTURING CELL
A manufacturing cell is an efficient grouping of all the resources required to

manufacture a product.
Resources, which usually include people, supplies, machines, tools and other
production equipment, are arranged in close proximity to enhance
communication and allow everyone to see what is going on at all times.
A manufacturing cell consists of two or more operations, work stations, or machines

dedicated to processing one or a limited number of parts or products.
A cell has a defined working area and is scheduled, managed, and measured as a
single unit of production facilities.
The outputs of a cell are more-or-less complete parts or assemblies, ready for use by
a downstream operation or cell, or for shipment to a customer.
Physical, Procedural, and Personal aspects must be addressed when planning a

manufacturing cell.
Cells consist of physical facilities such as layout, material handling,

machinery, and utilities.
Cells also require operating procedures for quality, engineering, materials

management, maintenance, and accounting.
Cells employ personnel in various jobs and capacities, they also require
policies, organization, leadership, and training.
Benefits of Manufacturing Cell

The principal physical change made with a manufacturing cell us to reduce the
distance between operations.
Reduces material handling, cycle times, inventory, quality problems, and space
requirements.
Reduced materials handling – 67% to 90% reductions in distance traveled are

common, since operations are adjacent within a dedicated area.
Reduced inventory in process – 50% to 90% reductions are common, since
material is not waiting ahead of distant processing operations. Also, within the cell,
smaller lots or single-piece flow is used, further reducing the amount of material in
process.
Shorter time in production – from days to hours or minutes, since parts and
products can flow quickly between adjacent operations.
Easier production control
Greater operator productivity
Quicker action on quality problems
More effective training
Better utilization of personnel
Better handling of engineering changes
Difficulties in Planning & Managing Cells

Planners and managers must overcome the following difficulties:
1. Worker rejection or lack of acceptance – often due to lack of operator
involvement in planning the cell, or to insufficient motivation and explanation by
management, especially if the outcome is perceived to be a work force reduction.
2. Lack of support or opposition by support staffs in production planning,
inventory control and/or cost accounting – usually when creation of the cell
causes changes in procedures and practices, or reduces the amount of detail
reported from the plant floor.
3. Reduced machine utilization – due to dedication of equipment to cells and to
families of parts. In some cases, additional, duplicated machinery may be
required. In other cases, large and high-speed equipment that may be appropriate
in a process-oriented department or job shop must be replaced by slower and
usually smaller, lower capacity machines that are more appropriate to the volumes
of a cell.
4. Need to train or retrain operators, often for a wider range of duties and
responsibilities.
5. Wage and performance measurement problems, especially when individual
and piece rate incentives are in use. The team-oriented nature of the typical cell
and the goals of inventory reduction may work against traditional incentives and
measures.
HOW TO PLAN A MANUFACTURING CELL

Most cells can be planned using a simple six-step approach:
1.Orient the Project
2. Classify the Parts
3. Analyze the Process
4. Couple into Cell Plans
5. Select the Best Plan
6. Detail and Implement the Plan
1.Orient the Project : The cell planner’s first step is to organize the project,
beginning with a statement of objectives, operational goals, and desired
improvements. External conditions imposed by the facility or the
surroundings should be noted. The planning or business situation is
also reviewed and understood for issues such as urgency and timing,
management constraints, or other policy matters.
2.Classify the Parts : Most projects have a candidate list of potential parts
that could be made in the cell. These parts typically have the same or
similar routings. Classifying the parts also simplifies the analysis and
design of the cell. Classification of parts can be carried out by
considering Physical and Manufacturing features of the part.
3.Analyze the Process :

The planner uses charts and diagrams to visualize the routings for each
class or sub-group of parts, and then calculates the numbers of
machines and/or operators and work places that will be required to
satisfy the target production rates and quantities.
4. Couple into Cell Plans :

A cell plan is a coupling of parts and process into an effective arrangement
and operating plan.
It should include:
The layout of operating equipment (physical).

The method(s) of moving or handling parts and materials (physical).
The procedures or methods of scheduling ,Operating, and Supporting the
cell (procedural) .
The policies, organizational structure, and training required to make the cell
work (personal) .
5. Select the Best Plan :

The planning team and other decision-makers will evaluate the
alternatives prepared in Step 4 and select the best plan. Typically, this
selection will be based upon comparisons of costs and intangible
factors like Flexibility , Response time to changing production
demand, Ease of supervision, Ease of material handling.
6. Detail and Implement the Plan :

Once selected, details must still be worked out and preparations made to
implement the cell plan.
Detailing should begin with an updated, dimensioned drawing of the
selected cell layout – typically at a fairly large scale, say 1:50.
Implementing a cell is an opportunity on a relatively small scale to make

progress on plant-wide improvement initiatives. The cell
implementation plan should include tasks, time, and money .
INVENTORY
Inventory generally refers to the material in stock. it is also called as idle
resources of the enterprise.
Types of Inventories
A manufacturing firm generally carries following types of inventories

1. Raw materials: Raw materials are those basic unfabricated materials which
have not undergone any operation since they are received from the suppliers.
2. Bought Out Parts: Finished parts, sub assemblies which are purchased
from outside as per company specifications.
3. Work- in Progress inventories (WIP): These are item or materials in
partially completed condition of manufacturing.
4. Finished goods inventories : Completed products ready for dispatch.
5. Maintenance ,repair and operating stores : These inventories refer to
those item which do not form the part of the final product but are consumed
in the production process.
6. Tool Inventory: Includes both standard tools and special tools.
7. Miscellaneous inventories: office stationeries and other consumable stores.
Reasons to keep Inventory :

1. To stabilise Production: The inventories should be made available to the
production as per the demand failing which result in stock out and
production stoppage takes place.
2. To take the advantage of price discount: Manufactures offer discount for
bulk buying and to gain this price advantage the materials are bought in bulk
even though it is not required immediately.
3. To meet the demand during the replenishment period : inventory is
maintained to meet the demand during the procurement (replenishment )
period.
4. To prevent loss of orders (sales) : In this competitive scenario , one has to
meet the delivery schedules at 100 percent service level ,means they cannot
afford to miss the delivery schedule which may result in loss of sales.
5. To keep pace with changing market conditions : The organisations have to
anticipate the changing market sentiments and they have to stock materials
in anticipation of non-availability of materials or sudden increase in prices.
6. Sometimes the organisations have to stock materials due to other reasons
like suppliers minimum quantity condition, seasonal availability of
materials or sudden increase in prices.
OBJECTIVES OF INVENTORY CONTROL
1. To ensure adequate supply of products to customer and avoid shortages

as far as possible.
2. To make sure that the financial investment in inventories is minimum.
3. Efficient purchasing ,storing, consumption and accounting for materials
is an important objective.
4. To maintain timely record of inventories of all the items and to
maintain the stock within the desired limits.
5. To ensure timely action for replenishment.
6. To provide a reserve stock for variations in lead times of delivery of
materials.
7. To provide a scientific base for both short term and long term planning
of materials.
INVENTORY CONTROL
Inventory control is a planned approach of determining what to order, when to

order and how much to order and how much to stock so that costs associated
with buying and storing are optimal without interrupting production and sales.
Inventory control basically deals with two problems
1)When should an order be placed ? (Order level)

2) How much should be ordered ?( Order quantity)
These problems solved by the use of inventory models. The scientific inventory
control system strikes the balance between the loss due to non-availability of an
item and cost of carrying the stock of an item. Inventory control aims at
maintaining optimum level of stock of goods required by the company at
minimum cost to the company.
An inventory control system is used to keep inventories in a desired state while

continuing to adequately supply customers and its success depends on
maintaining clear records on a periodic or perpetual basis.
COSTS ASSOCIATED WITH INVENTORY

1.PURCHASE COST: (Production Cost) : The value of an item is its unit
purchasing (production ) cost. This cost becomes significant when availing the
price discounts.
2.CAPITAL cost: the amount invested in an item,(capital cost) is an amount of
capital not available for other purchases.
3.Ordering cost: Cost of ordering is the amount of money expended to get an
item into inventory. This takes into account all the costs incurred from calling the
quotations to the point at which the items are taken to stock.
Ordering cost are of two types Fixed cost and variable cost.
Fixed cost does not depends upon number of orders. Salaries and wages of
permanent employee,accounting,incoming inspection cost are fixed cost.
Fixed cost are generally classified as:
Purchasing cost: the clerical and administrative cost associated with the
purchasing.
Inspection cost: The cost of checking material after they are received by the
supplier for quantity and quality and maintaining records of the receipts.
Accounting cost: The cost of checking supply against each order, making
payments and maintaining records of purchases.
Transportation Costs. The cost incurred for transportation of material.
4. INVENTORY Carrying Cost( Holding cost):

these are the costs associated with holding a given level of inventory on hand and
this cost vary in direct proportion to the amount of holding and period of holding
stocks in stores. The holding costs includes Storage cost , Handling cost ,
Depreciation ,taxes and insurance , Cost on record keeping, Product deterioration
and obsolescence, spoilage ,breakage, and loss due to perishable nature.
5. Shortage Cost:
When there is a demand for the product and the item needed is not in stock,
then we incur a shortage cost. The shortage cost include Backorder cost,
loss of future sales, loss of customer goodwill, extra cost associated with
urgent, small quantity ordering costs, loss of profit contribution by lost sales
revenue.
Production Scheduling
Scheduling can be defined as “Prescribing of when and where each operation necessary
to manufacture the product is to be performed". it is also defined as “ establishing of
times at which to begin and complete each event or operation comprising a procedure.” The
principle aim of scheduling is to plan the sequence of work so that production can be
systematically arranged towards the end of completion of all products by due date.
Scheduling is the process of arranging, controlling and optimizing work and workloads in a
production process or manufacturing process. Scheduling is used to allocate plant and
machinery resources, plan human resources, plan production processes and purchase
materials.
It is an important tool for manufacturing and engineering, where it can have a major impact
on the productivity of a process. In manufacturing, the purpose of scheduling is to
minimize the production time and costs, by telling a production facility when to make, with
which staff, and on which equipment. Production scheduling aims to maximize the
efficiency of the operation and reduce costs.
The benefits of production scheduling include:
Process change-over reduction ,Inventory reduction, leveling Reduced scheduling effort,
Increased production efficiency, Labor load leveling , Accurate delivery date quotes, Real
time information.
SUPPLY CHAIN MANAGEMENT

Supply chain management is the management of the flow of goods and services and
includes all processes that transform raw materials into final products. It involves the
active streamlining of a business's supply-side activities to maximize customer value and
gain a competitive advantage in the marketplace. SCM represents an effort by suppliers to
develop and implement supply chains that are as efficient and economical as possible.
Supply chains cover everything from production to product development to the information
systems needed to direct these undertakings.
Supply chain management is a cross-functional approach that includes managing the

movement of raw materials into an organization, certain aspects of the internal processing
of materials into finished goods, and the movement of finished goods out of the
organization and toward the end consumer. As organizations strive to focus on core
competencies and become more flexible, they reduce their ownership of raw materials
sources and distribution channels. These functions are increasingly being outsourced to
other firms that can perform the activities better or more cost effectively. The effect is to
increase the number of organizations involved in satisfying customer demand, while
reducing managerial control of daily logistics operations. Less control and more supply
chain partners lead to the creation of the concept of supply chain management. The purpose
of supply chain management is to improve trust and collaboration among supply chain
partners thus improving inventory visibility and the velocity of inventory
Management.
Objectives of Supply Chain Management
The Primary objective of supply chain management is to reduce risks and

uncertainties in to supply chain, thereby positively affecting inventory levels,
operation and product cycle time, process and ultimately end user’s service level.
1. The objective of Supply Chain Management is to minimize total supply chain

cost to meet fixed and given demand.
2. Solving supplier’s problems and beyond his level.
3. Customer service performance improvement.
4. Reduction of pre & post production inventory.
5. Minimizing variance by means of activities like standardization, variety
reduction, etc.
6. Minimum total cost of operation & procurement.
7. Product Quantity control.
8. Achieving maximum efficiency in using labour, capital & plant through the
company.
9. Flexible planning and control procedures.

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Industrial Engineering unit 5 12-Sep-18

NEED FOR SELECTING A SUITABLE LOCATION

1. Whether to expand the existing capacity and facilities.

Reasons for Replacement of existing facilities to New locations:

FACTORS INFLUENCING PLANT LOCATION

9. Community and labour attitude.

1. Proximity to markets: Every company is expected to serve its customers by providing

3. Transportation facilities: Speedy transport facilities ensure timely supply of raw

6. Law and taxation

7.Suitability of land and climate

The various services like communications, banking services professional consultancy

9. Community and labour attitude.

Plant layout refers to the physical arrangement of production facilities. It is the

OBJECTIVES OF PLANT LAYOUT

Layouts can be classified into the following five categories:

A combination of process and product layouts combines the advantages of both

FIXED POSITION LAYOUT

TYPES OF MATERIAL FLOW LINES

S-Shaped patterns are

Tools and Techniques of Plant layout

3. Diagrams (Flow diagram and string diagram)

4. REL( Relationship Chart)

REL (RELATIONSHIP CHART)

SYSTEMATIC LAYOUT PLANNING(SLP)

Steps involved in SLP Procedure

5. Flow or Activity Relationship Diagram

8. Adjusting the Diagram :

9.Analysis for optimization.

10. Evaluating and determining the best

COMPUTER AIDED WORKPLACE DESIGN

Various Computer Packages available for Plant layout analysis are

CRAFT(Computerised Relative allocation of facilities.),

Computerised Techniques for layout analysis.

CRAFT considers exchange between locations repeatedly until no

CRAFT programme works on the assumption that movement between

2. CORELAP (Computerized Relationship Layout Planning)

A manufacturing cell is an efficient grouping of all the resources required to

A manufacturing cell consists of two or more operations, work stations, or machines

Physical, Procedural, and Personal aspects must be addressed when planning a

Cells consist of physical facilities such as layout, material handling,

Cells also require operating procedures for quality, engineering, materials

Benefits of Manufacturing Cell

Reduced materials handling – 67% to 90% reductions in distance traveled are

Difficulties in Planning & Managing Cells

HOW TO PLAN A MANUFACTURING CELL

3.Analyze the Process :

4. Couple into Cell Plans :

The layout of operating equipment (physical).

5. Select the Best Plan :

6. Detail and Implement the Plan :

Implementing a cell is an opportunity on a relatively small scale to make

A manufacturing firm generally carries following types of inventories

Reasons to keep Inventory :

OBJECTIVES OF INVENTORY CONTROL

1. To ensure adequate supply of products to customer and avoid shortages

Inventory control is a planned approach of determining what to order, when to

1)When should an order be placed ? (Order level)

An inventory control system is used to keep inventories in a desired state while

COSTS ASSOCIATED WITH INVENTORY

4. INVENTORY Carrying Cost( Holding cost):

SUPPLY CHAIN MANAGEMENT

Supply chain management is a cross-functional approach that includes managing the