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PLANT LAYOUT

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Plant Layout at Akbar Brothers (Private) limited

Department of Decision Sciences

Faculty of Management Studies and Commerce

University of Sri Jayewardenepura

Year III - Semester II

DSC 3304 - Operations Systems’ Design and Management

Group Assignment

Product Design and Analysis

Akbar Brothers (Private) Limited.

Due Date of Submission

17th December, 2014

Senior Lecturer

Prof. T.M.B. Palawatha

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Plant Layout at Akbar Brothers (Private) limited

GROUP CONTRIBUTORY SHEET

MC CPM Name with Initials Signature

66407 9484 U.G.N.K. Bandara

66662 9737 S.D.S.W. Karunasingha

66812 9886 H.M.G.D. Marambage

66927 10001 S.H. Pramudika

66958 10032 R.M.H.L.S. Rajakaruna

67084 10156 M.M.N. Shahama

Date: Course Lecturers’ Approval:

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Plant Layout at Akbar Brothers (Private) limited

ABSTRACT

As per the guidelines given in our assignment we prepared a report for Operations Systems’
Design and Management subject by applying the theories we learnt into a real world production
situation.

In this project, we chose the concept of “Layout Planning” and selected Akbar Brothers (Private)
limited a company with sophisticated production process which includes Machine Blending,
Storing, Flavoring, Packaging, Manual Blending, Sample Checking, Loading, and Unloading.
Akbar Brothers Kalaniya Factory is selected as the sample company to introduce plant layout.
The main objective of this project is to understand on plant layout planning way of businesses,
organizational structure & manufacturing process in a practical way.

Akbar Brothers (Private) Limited is the largest tea exporter incorporated in Sri Lanka. Only the
finest tea leaves go into a cup of Akbar Black Tea. Naturally rich in protective anti-oxidants and
fresh from the best plantations around Sri Lanka, Akbar Black Tea has been consumed by
millions worldwide for over 40 years.

Tea remains Akbar Brothers (Private) Limited core business as ever. However, with the strength
and stability thus consolidated, the company’s business portfolio has subsequently diversified
over the years. Accordingly, the company has moved in to the fields of Power Generation,
Pharmaceuticals, Flexible Packing, Banking, Insurance, Property Development and Management
as well. Akbar owns large scale Factory, Machines with 3000 employees working in it. Middle
East is one of their main customers. ISO 9001, 9002, HACCP Food Certificates and “5S”
concept are used when handling their daily operations.

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Plant Layout at Akbar Brothers (Private) limited

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Plant Layout at Akbar Brothers (Private) limited

ACKNOWLEDGEMENT

This report reflects the efforts of number of people over a number of weeks under a very specific
and worthy guidance. Therefore firstly we honorably thank our Senior Lecturer Dr. Palawatha
and the department of Decision Sciences for providing the needful requirements in fulfilling this
task.

We would be grateful to thank the resource and information providers, Akbar Brothers (Private)
limited for being kind enough to share their industrial experience with us. In that regard below
mentioned key personals should be highly appreciated for committing their valuable time.

 Managing Director – Mr. Asgi Akbarally


 Senior Operations Manager – Mr. Ruwan Fernando
 Complex Manager – Mr. Jayamane
 Store Executive – Mr. Gayan

We are also grateful to our colleagues and friends for granting their enormous support in
carrying out this assignment.

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Plant Layout at Akbar Brothers (Private) limited

TABLE OF CONTENT
GROUP CONTRIBUTORY SHEET……………………………………………………..………2
ABSTRACT…………………………………………………………………………….….……...3
ACKNOWLEDGEMENT…………………………………………………………………..…….4
TABLE OF CONTENT…………………………………………………………………..…….…5

1. INTRODUCTION....................................................................................................................6

1.1 Objective...........................................................................................................................6

1.2 History - Akbar Teas' excellence wins world recognition................................................6

2. PLANT LAYOUT....................................................................................................................7

2.1 Process Layout.......................................................................................................................7

2.3 Group Layout.........................................................................................................................8

2.4 Fixed Position Layout............................................................................................................8

3. CRAFT PROCEDURE............................................................................................................8

4. CONCLUSION......................................................................................................................21

5. REFERENCES.......................................................................................................................21

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Plant Layout at Akbar Brothers (Private) limited

1. INTRODUCTION

1.1 Objective

Objective of this report is to understand on Plant Layout Planning of Akbar Brothers (Private)
limited. According to the guidelines of our assignment in for Operations Systems’ Design and
Management we have chosen Akbar Brothers (Private) limited and got an understanding about
the concept of plant layout in tea manufacturing process.

Plant Layout Planning is very important function for production organizations because most of
the time quantity of production depends on the Time Cost of the production.

1.2 History - Akbar Teas' excellence wins world recognition

As tea merchants owning a unique family tradition stretching back over 100 years, it was natural
indeed for Akbar Brothers (Private) Limited to become the first ever Sri Lankan tea company to
be awarded the internationally recognized ISO 9001, 9002 and HACCP quality certificates. Prior
to that, the prestigious 'Lion' logo endorsement of Sri Lanka Tea Board for Pure Ceylon Tea was
awarded as well. More wholesome and decisive acclaim came from the Sri Lanka Marketing
Institute when they consistently honored 'Akbar' tea as the "International Brand of the Year".
These come as further confirmation of the superiority of the overall quality of this flagship brand
of finest Ceylon tea.

History of Akbar Brothers family was destined to commence in the same era in Sri Lanka in the
1860's. James Taylor, a Scotsman, planted the first tea sapling in Sri Lanka in 1867 whilst in
1864, the great-grand father of present Akbar brothers' Shaikh Hebtulabhoy, left his native India
and settled down in Sri Lanka. His son Tyeabally Shaikh Hebtulabhoy pioneered the family in to
the thriving Sri Lanka tea industry, by forming M. S. Hebtulabhoy & Company Limited.

In time, Tyeabally Shaikh Hebtulabhoy's grandsons- Abbas, Abid and Inayet Akbarally - who
too were well versed in tea, relinquished their positions in Hebtulabhoys & Co., and formed
Akbar Brothers in 1969. Within 3 short years Akbar Brothers succeeded in making significant
breakthroughs in to major tea markets in the Middle East and elsewhere.

Vision of Akbar Brothers (Private) limited is “World renowned tea choice of many around the
globe”.
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Plant Layout at Akbar Brothers (Private) limited

2. PLANT LAYOUT

A floor plan of the physical facilities which are used in production can be identify as Plant
Layout. Plant Layout is an important basis of Production Design and analysis and also generates
number of achievements such as

 Minimizes the investment in equipment.


 Minimizes overall production time.
 Utilizes existing space effectively.
 Provide for employee convenience, safety and comfort.
 Maintain flexibility of arrangement and operation.
 Minimizes material handling cost.
 Facilitate the manufacturing cost.
 Facilitate the organizational structure.

Classification of Layout Process Layout

Product Layout

Group Layout

Fixed Position Layout

According to the classification noted above there are different kind of situations we are able to
perform in production. Which layout method should be selected depend on many cases.

2.1 Process Layout

Process layout is a design of the floor plan of a plant which aims to improve efficiency by
arranging equipment according to its function. The production line should be designed to
eliminate waste in material flows, inventory handling. In process layout, the work stations and
machinery are not arranged according to a particular production sequence. Instead, as the
advantages of the process layout we mainly identified provide visual control of activates and
utilize space efficiency. In Akbar Brothers (Private) limited plant layout we also identified as a
process layout.

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Plant Layout at Akbar Brothers (Private) limited

2.2 Product Layout

In a Product Planning Layout system the work stations and equipment are located along the line
of production, which called assembly lines. Here the work should be divided in to small parts
and those units are moved along a line by a conveyor. Because the work stations each do small
amounts of work, the stations utilize specific techniques and equipment tailored to the individual
job they are assigned. This can lead to a higher rate of production.

2.3 Group Layout


Is mainly emphasize as a combination of Product & Process layout. Minimize inter cell
movements can be achieved by performing this strategy.

2.4 Fixed Position Layout


If assemble products that are too large, bulky, or fragile to safely or effectively move to a
location for completion fixed position layout technique can perform.

3. CRAFT PROCEDURE

In the Akbar Brothers (Private) Limited we are identified following details.

 No of departments - 8

1 7 Unloading 8 Loading

Machine

Blending
6 Sample Checking

5
Manual
2 Storing 3 4
Packaging Blending
Flavoring

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Plant Layout at Akbar Brothers (Private) limited

 No of interchangeable departments – 5 (Initial departments)

 Cost Matrix [Cij]

Cost Matrix (cij)

From/
1 2 3 4 5
To

1 - 1 1 1 1

2 1 - 1 1 1

3 1 1 - 1 1

4 1 1 1 - 1

5 1 1 1 1 -
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Plant Layout at Akbar Brothers (Private) limited

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Plant Layout at Akbar Brothers (Private) limited

 Flow Matrix [fij]

Flow Matrix (fij)

From/To 1 2 3 4 5

1 - 5 3 2 1

2 4 - 1 2 3

3 2 3 - 0 1

4 1 0 2 - 5

5 1 0 1 2 -

 Area of Departments

Area of the Departments

Departments 1 2 3 4 5

Area (sq. m ) 1960 1360 714 986 1260

 Centroids of Departments

Centroids

(x1,y1
) (17.5,62)

(x2,y2
) (20,17)

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Plant Layout at Akbar Brothers (Private) limited

(x3,y3
) (50.5,17)

(x4,y4
) (75.5,17)

(x5,y5
) (105,21)

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Plant Layout at Akbar Brothers (Private) limited

 Distance Matrix [dij]

Distance Matrix (dij)

Fr
o
m
1 5
/
T
o

47. 12
1 78 103
8.5

47. 30. 55.


2 89
5

30. 58.
3 78 25
5

10 55. 33.
4 25
3 5

12 58. 33.
5 89
8.5

 Total Cost Matrix

Total Cost Matrix (d*f*c)

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Plant Layout at Akbar Brothers (Private) limited

From/To 1 2 3 4 5

1 0 237.5 234 206 128.5

2 190 0 30.5 111 267

3 156 91.5 0 0 58.5

4 103 0 50 0 167.5

5 128.5 0 58.5 67 0

228
Total Cost
5

 Various Department Interchangers

Pair of Departments Remark Cost

1&2 Common Boarder 2229.5

1&3 N/A N/A

1&4 N/A N/A

1&5 N/A N/A

2&3 Common Boarder 2376.5

2&4 N/A N/A

2&5 N/A N/A

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Plant Layout at Akbar Brothers (Private) limited

3&4 Common Boarder 2510

3&5 N/A N/A

4&5 Common Boarder 2277

 Interchange 1 & 2

Cen
rtoids

( (
x 2
1 0
, ,
y 1
1 7
) )

(
1
( 7
x .
2 5
, ,
y 6
2 2
) )

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Plant Layout at Akbar Brothers (Private) limited

(
5
( 0
x .
3 5
, ,
y 1
3 7
) )

(
7
( 5
x .
4 5
, ,
y 1
4 7
) )

(
( 1
x 0
5 5
, ,
y 2
5 1
) )

Distance Matrix (dij)

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Plant Layout at Akbar Brothers (Private) limited

Fro
m/
To 1 2 3 4 5

3 5
4 0 5
7. . . 8
1 5 5 5 9

4 1
7 1 2
. 7 0 8.
2 5 8 3 5

3
0 5
. 7 2 8.
3 5 8 5 5

5
5 1 3
. 0 2 3.
4 5 3 5 5

1 5 3
2 8 3
8 8. . .
5 9 5 5 5

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Plant Layout at Akbar Brothers (Private) limited

Total Cost Matrix (d*f*c)

From/
To 1 2 3 4 5

237. 91 11
1 0 5 .5 1 89

19 20 385
2 0 0 78 6 .5

58.
3 61 234 0 0 5

55 167
4 .5 0 50 0 .5

58
5 89 0 .5 67 0

2229
Total Cost .5

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Plant Layout at Akbar Brothers (Private) limited

 Interchange 2 & 3

Cen
troids

(
1
( 7
x .
1 5
, ,
y 6
1 2
) )

(
5
( 0
x .
2 5
, ,
y 1
2 7
) )

( (
x 2
3 0
, ,
y 1
3 7

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Plant Layout at Akbar Brothers (Private) limited

) )

(
7
( 5
x .
4 5
, ,
y 1
4 7
) )

(
( 1
x 0
5 5
, ,
y 2
5 1
) )

Distance Matrix (dij)

Fr
o
m/
To 1 2 3 4 5

1 7 4 1 1
8 7 0 2

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Plant Layout at Akbar Brothers (Private) limited

8
. .
5 3 5

3 5
0 8
7 . 2 .
2 8 5 5 5

4 3 5
7 0 5
. . . 8
3 5 5 5 9

5 3
1 5 3
0 2 . .
4 3 5 5 5

1
2 5 3
8 8 3
. . 8 .
5 5 5 9 5

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Plant Layout at Akbar Brothers (Private) limited

Total Cost Matrix (d*f*c)

F
r
o
m
/
T
o 1 2 3 4 5

1 1
4 2
3 2 2 8
9 . 0 .
1 0 0 5 6 5

1
3 7
3 0 5
1 . 5 .
2 2 0 5 0 5

9
1
9 . 8
3 5 5 0 0 9

4 1 0 1 0 1
0 1 6
3 1 7
.

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Plant Layout at Akbar Brothers (Private) limited

1
2
8
. 8 6
5 5 0 9 7 0

2
3
7
6
.
Total Cost 5

 Interchange 3& 4

Cen
troids

(
1
( 7
x .
1 5
, ,
y 6
1 2
) )

( (

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Plant Layout at Akbar Brothers (Private) limited

x 2
2 0
, ,
y 1
2 7
) )

(
7
( 5
x .
3 5
, ,
y 1
3 7
) )

(
5
( 0
x .
4 5
, ,
y 1
4 7
) )

( (
x 1
5 0
, 5

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Plant Layout at Akbar Brothers (Private) limited

,
y 2
5 1
) )

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Plant Layout at Akbar Brothers (Private) limited

Distance Matrix (dij)

Fr
o
m/
To 1 2 3 4 5

1
4 2
7 1 8
. 0 7 .
1 5 3 8 5

4 5 3
7 5 0
. . . 8
2 5 5 5 9

5 3
1 5 3
0 . 2 .
3 3 5 5 5

3 5
0 8
7 . 2 .
4 8 5 5 5

5 1 8 3 5
2 3 8

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Plant Layout at Akbar Brothers (Private) limited

8
. . .
5 9 5 5

Total Cost Matrix (d*f*c)

Fr
o
m
/
T
o 1 2 3 4 5

2 1
3 2
7 3 1 8
. 0 5 .
1 0 5 9 6 5

5
1 5 2
9 . 6 6
2 0 0 5 1 7

1
6 3
2 6 3
0 . .
3 6 5 0 0 5

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Plant Layout at Akbar Brothers (Private) limited

2
9
2
7 5 .
4 8 0 0 0 5

1
2 3
8 3 1
. . 1
5 5 0 5 7 0

2
5
1
Total Cost 0

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Plant Layout at Akbar Brothers (Private) limited

 Interchange 4 & 5

Cen
troids

(
1
( 7
x .
1 5
, ,
y 6
1 2
) )

( (
x 2
2 0
, ,
y 1
2 7
) )

( (
x 5
3 0
, .
y 5
3 ,
) 1

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Plant Layout at Akbar Brothers (Private) limited

7
)

(
( 1
x 0
4 5
, ,
y 2
4 1
) )

(
7
( 5
x .
5 5
, ,
y 1
5 7
) )

Distance Matrix (dij)

Fr
o
m/
To 1 2 3 4 5

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Plant Layout at Akbar Brothers (Private) limited

1
4 2
7 8 1
. 7 . 0
1 5 8 5 3

4 3 5
7 0 5
. . 8 .
2 5 5 9 5

3 5
0 8
7 . . 2
3 8 5 5 5

1
2 5 3
8 8 3
. 8 . .
4 5 9 5 5

5 3
1 5 3
0 . 2 .
5 3 5 5 5

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Plant Layout at Akbar Brothers (Private) limited

Total Cost Matrix (d*f*c)

Fr
o
m
/
T
o 1 2 3 4 5

2
3
7 2 2 1
. 3 5 0
1 0 5 4 7 3

1
3 6
1 0 1 6
9 . 7 .
2 0 0 5 8 5

9
1 1
5 . 2
3 6 5 0 0 5

4 1 0 1 0 1
2 1 6
8 7 7
. .

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Plant Layout at Akbar Brothers (Private) limited

5 5

1
0 2 6
5 3 0 5 7 0

2
2
7
Total Cost 7

 New layout after interchanging 4 & 5

Cenrtoid
s

(
x
1, 81.
y (17 91
1 .5, X 50
) 62) 5 8

(
x
2, 14.
y (20 29
2 ,17 Y 62
) ) 5 1

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Plant Layout at Akbar Brothers (Private) limited

(
x
3,
y (50
3 .5,
) 17)

(
x
4,
y
4 (105,25.56
) 65)

(
x
5,
y
5 (81.91508,
) 14.29621)

Distance Matrix (dij)

From/To 1 2 3 4 5

1 47.5 78 123.9335 112.1189

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Plant Layout at Akbar Brothers (Private) limited

2 47.5 30.5 93.5665 64.61887

3 78 30.5 63.0665 34.11887

4 123.9335 93.5665 63.0665 34.35521

5 112.1189 64.61887 34.11887 34.35521

Total Cost Matrix (d*f*c)

From/To 1 2 3 4 5

1 0 237.5 234 247.867 112.1189

2 190 0 30.5 187.133 193.8566

3 156 91.5 0 0 34.11887

4 123.9335 0 126.133 0 171.7761

5 112.1189 0 34.11887 68.71042 0

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Plant Layout at Akbar Brothers (Private) limited

Total Total cost is greater than 2285 of the present layout. Therefor optimal
Cost 2351.385 layout should be the new layout.

 Interchange 4&5 New layout

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Plant Layout at Akbar Brothers (Private) limited

4. CONCLUSION
We have selected Akbar Brothers (Private) Limited located in Kaleniya for our Operations
Systems’ Design and Management assignment to understand on Plant Layout plan of Akbar
Brothers. In this project we have given brief introduction to the Akbar Brothers (Private) Limited
and its Layout plan by developing the structure. According to the classification of Layout we
have identified that Akbar Brothers (Private) Limited uses Process Layout type flow in their
production system.

Then by performing CRAFT Procedure we tried to find out Is Akbar Brothers implementing
optimal Plant Layout plan? After the procedure, we identified that the initial layout is not in the
optimal level but we could understand which the optimal strategy is also.

However the present Plant Layout of Akbar Brothers (Private) Limited may be influenced to the
efficiency of their production badly. So we can say it is very good to develop and perform the
Layout as we have identified above to reach targets better than today.

5. REFERENCES

 Factory visit at Akbar Brothers (Private) Limited – Kaleniya Factory


 www.dti.gov.uk/quality/gurus
 http://www.twinings.com/en_int/tea_production

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Plant Layout at Akbar Brothers (Private) limited

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