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Definitions
A plant/factory/ is a place where: men, materials, money, equipment, machinery, etc.

are brought together for manufacturing products.

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 Plant location means deciding a suitable location, area, place, etc. where the plant or
factory will start functioning.

 Plant layout means the disposition of the various facilities.

(equipments, materials, manpower, etc.) and services of the plant within the area of the site
selected

 Plant design is a broad function taking place in the origin of an enterprise.

(planning of finances, plant location).

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Plant location

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Plant layout

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 Plant Location
Plant Location decision is based on the organizations long-term strategies.

Like technological, marketing, resource availability and financial strategies.

Plant location is important because:

• Location influences plant layout facilities needed.

• Location influences capital investment and operating costs.

Need for Plant location decision:

• When a new facility to be established.

• Expansion of existing facility.

• To establish additional facilities in new territories (growing volume of business).

• W/n original advantage of the plant have been out weighed due to new development.

• W/n new economics, social, legal or political factors suggest a change of location 6
 CONT’D

Plant layout is the act of planning an optimum arrangement of industrial facilities,

including personnel, operating equipment, storage space, materials handling

Problems of layout develop when needed to:

– start a new product
– change the product design
– reduce the cost
And when
The market demand changes,
The resulting problems involve (Figure )
The plant, the product, the building become
• planning a completely new plant, or
obsolete,
• rearranging presently installed layout, or
Accidents occur frequently,
• making adjustments to existing layout.
The working environment is poor. 7
 Factors influencing plant location
Plant location = geographic site for a firm

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CONTROLLABLE FACTORS
1. Proximity to markets: To ensure a consistent supply of goods to customers and reduces
the cost of transportation.
2. Supply of raw material: get raw material in right qualities and time in order to have an
uninterrupted production.
Important for perishable good and cost of transportation is very high.
3. Transportation facilities:

 For timely supply of raw materials to the company and finished goods to the
customers.

 Is a prerequisite for the location of the plant (physical transportation, air, road, rail
and water)
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4. Infrastructure availability: power, water and waste disposal, etc

5. Labor and wages: Securing adequate number of labor and with skills.
Availability of Efficient and Cheap Labor should be ensured
UNCONTROLLABLE FACTORS

1. Government policy: policies of governments like:- labor laws, building codes, safety, etc.,

2. Climatic conditions: Geology of the area & climatic conditions (humidity, temperature).

3. Supporting industries and services: subcontracts the work to vendors. services like

communications, banking services professional consultancy services will play a vital role in

selection of a location

4. Community infrastructure and amenity:- They are: roads, railways, port facilities, power lines

and service facilities like schools, universities and hospitals.

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 CONT’D
Specific Location Factors for Manufacturing Organization
A. Dominant factors:

1. Favorable labor climate:-

Labor climate includes wage rates, training requirements, attitudes toward work, worker
productivity.
2. Proximity to markets:-
Locating near markets is particularly important when the final goods are bulky or heavy
and outbound transportation rates are high.
3. Quality of life:-
Good schools, social and recreational facilities, cultural events, and an attractive
lifestyle contribute to quality of life of labor.
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4. Proximity to suppliers and resources:-

plants supply parts to other facilities or rely on other facilities for management and staff

support.

These require frequent coordination and communication (difficult as distance increases).

5. Utilities, taxes, and real estate costs:-

include utility costs (telephone, energy, and water), local and state taxes, financing incentives

offered by local or state governments, relocation costs, and land costs.

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B. Secondary factors

 room for expansion,

 Construction costs,

 accessibility to multiple modes of transportation

 Community Attitude and Facilities

Specific Location Factors for Service Organization

Dominant factors:-

 Proximity to customers

 Transportation costs and proximity to markets

 Location of competitors
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 Selecting the plant site in city(Urban)

Advantages
 A city is very well connected by rails, roads and air.

 It provides a good market.

 Right labour force is available.

 Power and Water are easily available.

 The factory can be setup in an existing available buildings.

 Workers training and many other educational facilities are available.

 Services from experts and specialist are easily available.

 Other miscellaneous services (such as Hospital, Bank, etc)

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Disadvantages

• Land available for the building is limited in area

• Cost of land and building construction is high

• Expansion of the industry is seldom possible

• Local taxes, etc … are high

• Labour salaries are high

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 Selecting the plant site in a small town (Rural area)

Advantages

• Plenty of land is available for building construction and expansion purposes

• Land is cheap

• Cheap labour force

• Less tax and restriction

Disadvantages

• Skilled labours are not available

• Rail, road and air links may not be there at all or may not be adequate

• Power may not available

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 Objectives of Plant Layout

 Ensure effective space utilization,

 Minimize the cost of material handling (internal transports),

 Foresee future developments of the plant according to a rational master plan,

 Improve workers convenience as well as safety and create job satisfaction

 Avoid unnecessary capital investment.

 Facilitate the manufacturing process and flexibility of manufacturing operations

 Effective utilization of resource (men, equipment and space).

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 Principles of a good plant layout

1. Principle of integration:
-Integrates men, materials, machines and supporting services in order to get the
optimum utilization of resources and maximum effectiveness.
2. Principle of minimum distance:
-Concerned with the minimum travel of man and materials.
-The total distance travelled should be minimum.
3. Principle of cubic space utilization:
- utilize both horizontal and vertical space.
4. Principle of flow:
-makes the materials to move in forward direction towards the completion stage,
- there should not be any backtracking.

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 Principles of a good plant layout

5. Principle of maximum flexibility: Should altered without much cost and time, i.e., future
requirements should be taken into account while designing the present layout.
6. Principle of safety, security and satisfaction:-
-consideration to workers safety and satisfaction and safeguards the plant and machinery
against hazards
7. Principle of minimum handling:-
- reduce the material handling to the minimum.

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 Types of layout

1. Manufacturing units

2. Service Establishments

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 CONT’D

Manufacturing units

They are four types:

1. Product or line layout

2. Process or functional layout

3. Fixed position layout

4. Combined layout

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Product or line layout

-only one type of product is produced in a workstation.

-product must be standardized and manufactured in large quantities.

-The raw material moves very fast from one workstation

-with a minimum work in progress storage and material handling.

machines and auxiliary services are located according to the processing sequence of

the product.

Special purpose machines are used, machines are not shared by different products.

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 CONT’D

Product A Department
Mill Grind Inspect

1 2 3 4 5 6 7

Finished Good Store

Press Heat treat Paint Pack
Raw Materials

Grind Drill Inspect

1 2 3 4 5 6 7
Cast Paint Pack
Mill

Product B Department
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 Product Oriented Lay Out

Work in Progress

Raw
material Finished
goods

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 Advantages of product layout
• lower total material handling cost (mechanized handling systems).
• greater incentive for groups of workers to raise level of performance,
• Less space is occupied by work transit and for temporary storage.
• Hence, less work in process,
• Simplified production, planning and control systems are possible.

• Throughput time (time gap between in and out in the process) is less.

• Manufacturing cycle/ production time is short due to uninterrupted flow of

materials.
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 Disadvantages of product layout

 High initial investment (special purpose machine)

 No flexibility (production process)

 Low flexibility (manufacturing times)

 Breakdown of one machine obstruct the whole

 stoppages of machines in the downstream of the line.

 change in product design require major alterations in the layout.

 Monotonous work.
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 CONT’D

Product Layout is useful under the following conditions

 Mass production of standardized products

 Simple and repetitive manufacturing process

 Reasonably stable demand for the product

 Continuous supply of materials

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Process or Functional Layout
 recommended for batch production.
 For job shops employ process layouts
 variety of products manufactured
 low production volumes.
 facilities are grouped together according to their functions.
 flow paths of material vary from product to product.
Process or Functional Layout
Useful where:
 All machines performing a particular process are grouped together in a processing
department
 Low production volumes
 Rapid changes in the product mix
 High interdepartmental flow
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 CONT’D

Principles of grouping of machines:

 distance b/n departments should be as short as possible

 avoid long distance movement of materials

 departments should be in sequence of operations

 should be convenient for inspection and supervision

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 CONT’D

Foundry Dept. Drilling Dept. Grinding Dept. Brazing Dept. Inspection Dept.

Finished Good store

2 4
Raw materials

1 5 6
4 7

5 3
6 8
3
1 2 7

Press Dept. Heat treat Dept. Painting Dept. Milling Dept. Packing Dept.

Product A

Product B 32
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Advantages of Process Layout

less duplication of equipment,

hence lower investment cost,  greater incentive for individual

workers
machines are better utilized
 Supervisors will become highly
fewer machines are required.
knowledgeable
greater flexibility of production,  Breakdown of one machine does not
high degree of flexibility result in complete work stoppage
 Change in output design and volume
better and more efficient supervision,
can be more easily adapted
Higher utilization of production
facilities.
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 Disadvantages of Process Layout are:

• Material handling costs are high due to long movements

• Reduced material handling efficiency.

• More skilled labor is required

• resulting in higher labor cost.

• Lowered productivity due to number of set-ups.

• Throughput is longer and work in progress inventory is high,

• needing greater work in progress storage space

• Space and capital are tied up by work-in-process.

• More frequent inspection is needed, which results in costly supervision

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 CONT’D

Process Layout is useful under the following conditions

• Products are not standardized

• Quantity produced is small

• There are frequent changes in design and style of product

• Job shop type of work is done

• Machines are very expensive

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 Fixed-Position Layout

• material or major component remains in a fixed location,

• tools, machinery, men are brought to the fixed location.

• Materials and equipment are arranged concentrically.

• w/n one or a few pieces of identical heavy products are to be manufactured

• when the assembly consists of large number of heavy parts,

• the cost of transportation of these parts is very high.

• is not frequently used in industrial enterprises.

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CONT’D

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 Advantages of Fixed Position Layout
• saves time and cost(movement from station to station).
• layout is flexible.
• more economical (several orders executed simultaneously).
• Adjustments can be made to meet shortage of materials or absence of workers by changing
the sequence of operations.

Disadvantages of Fixed Position Layout
Production period being very long;
Capital investment is very heavy;
Very large space is required for storage of
material and equipment near the product;
Fixed Position Layout is useful under the
following conditions
Manufacture of bulky and heavy products such
as locomotives, ships, boilers, generators,
aircraft, etc…
Construction of building, dams, bridge, etc.
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 Combination layout
 combination of process and product layouts
 Useful w/n item being made in different types and sizes.
 machinery is arranged in a process layout
 process grouping is arranged in a sequence to manufacture various types and sizes of
products.
 sequence of operations remains same with the variety of products and sizes.

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.

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Systematic Layout Planning
 What is Ergonomics?
 A study of the relation between people and their work
environment.
 Is used to prevent injuries and illnesses associated with the
design of physical work and workstation.
 Is used to increase employee safety and comfort
 to optimize work performance and quality.

The term ‘ergonomics’ comes from the Greek words

ergon (work) and nomos (law).
Ergonomics should be seen as a ‘win/win’
opportunity to improve productivity and quality while
increasing employee safety and morale.
Fitting the job to the worker
 CONTD

Examples of work requirements that can cause discomfort, fatigue, injury, and illness are:

 Stretching to reach
 Repeated heavy lifting
 High pinch forces
 Handling objects that are sharp, very hot, or very cold.
 Working with hands above shoulders
 Long periods of work without a change in body posture.
 CONTD

Risk Factors
 Frequent Hand Use
 Temperature
 Arms Extended
 Noise
 Bending & Twisting
 Fatigue
 Static Body Posture
 Using Force

 Vibration

 Contact Stress
 CONTD

Effects on the Operator Effects on the Company

 Fatigue  Poor Quality

 Pain  Absenteeism
 Illness – sprains, back ache,  Higher costs
etc  Higher employee turnover
 Low morale & training
 Frustration & Irritation
 CONTD

THE BENEFITS OF ERGONOMICS

 Greater job satisfaction

 Higher productivity
 Lower medical & insurance costs
 Higher Quality
 Reduced lost time
 Reduced operator injury
 Lower absenteeism
 Increased morale
 Less employee turnover
Thank You

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