Facilities planning and Design

Module –I Plant location

1.1 Factors influencing plant location
1.2 Theories of plant location
1.3 Plant layout------- 1.3.1 Objectives of plant layout
1.3.2 Principles of plant layout
1.3.3 Types of pant layout -their Merits and Demerits
1. 4 Facilities design function: objectives
Introduction to Material Handling
1.5 Objectives and principles of material Handling
1.6 Unit load concept, Mechanization
1.7Common basic material handling equipment Types
Tutorial Questions:
1. Explain the factors influencing the location of plant?
2. Explain the theories of plant location?
3. Explain the objectives and principles of plant layout?
4. Explain the advantages , disadvantages and applications of types of
plant layout?
5. Explain the facility design function?
6. What is material handling? Explain the principles and objectives of
material Handling?
7. What is unit load concept ?Explain the principles, types, advantages
and Disadvantages of unit load concept?
8. Explain the levels of mechanization?
Text Books:
1. Plant layout and material handling-James M. Apple
2. Facility layout and location- francoise, R.L. and White J.A
3. Plant layout and design- James M Moore,
Plant location: Plant location refers to the choice of region and the selection of a particular
site for setting up a business or factory.

But the choice is made only after considering cost and benefits of different alternative sites.
It is a strategic decision that cannot be Changed once taken.
• A plant is a place where men, materials, money, equipment, machinery ..etc are
brought together for manufacturing products.

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

• Several factors are to be taken into consideration in finalizing the location of a

new plant/project.

• The ultimate objective should be to arrive at an optimal unit production cost so

as to ensure high productivity and efficiency.
Plant location factors:

1. Raw materials availability 9. Taxation and legal

Restrictions
2. Markets 10. Site characteristics
3. Energy availability 11. Flood and fire
protection
4. Climate conditions 12. Community factors
5. Transportation facilities
6. Water supply
7. Waste disposal
8. Labor supply
1.1 Factors influencing the plant location: a) Regional factors b) community
consideration c) site selection
 1.2 Theories o Plant location
1. Theory of maximum profit location: August Losch in 1954, Findout the
place. Where maximum profit occur.

2. Interdependence theory of location: Fettler and Hotelling

Plant location should be based on the ability of a site to control the
largest market area.

3. Location Analogue model:

4. Theory of least cost location: Thunen- German economist

Search for site offering the least cost with special refernce to agriculture.

5. Weber’s theory of location: Alfred Weber German economist in 1930.

Location choosen must consider the movement of raw materials to factory,
movement of finish products to the market.
 1.3 PLANT LAYOUT
• Plant layout refers to the arrangement of physical facilities such as machinery ,
equipment,furniture..etc within the factory building in such a manner so as to have quickest flow of
material at the lowest cost and with the least amount of handling in processing the product from the
receipt of material to the shipment of the finished product.

• 1.3.1 OBJECTIVES OF THE PLANT LAYOUT

The primary goal of the plant layout is to maximise the profit by arrangement of all the plant facilities
to the best advantage of total manaufacturing of the product.

1. Streamline the flow of materials through the plant.

2. Facilitate the manufacturing process.
3. Maintain high turnover of in-pracess inventory.
4. Minimize material handling cost
5. Effective utilization of men ,equipment and space
6. Make effective utilization of cubic space.
7. Flexibility of manufacturing operations and arrangement.
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
• Priniciples of plant layout:
1. Principle of integration
2. Principle of minimum distance
3. Principale of cubic space utilization
4. Principale of flow
5. Principale of maximum flexibility
6. Principal of safety: security and satisfaction
7. Principal of minimum handling.
1.3.3 Types of plant layout

1. Product layout

2. Process layout

3. Fixed position layout

4. Combination type layout

1. Product layout: Machines are placed according to the sequence in which
operation are performed on the product. Only one type product is produced in a
given area. Example: Car manufacturing.

• Advantages: Less space is required for the same volume of

production
• lesser material handling Equipment.
• Less work in process
• Smooth and continuous workflow
• Disadvantage: Higher initial capital investment
• High overhead charges
• Breakdown of one machine will disturb the production process
• Lesser flexibility of physical resources.
Pocess layout:
• In this type of layout the machines of a similar type are arranged
together at one place.
This type of layout is used for batch production.
• It is preferred when the product are not standardized and to be
produced in lesser qunntity.
• Manufacturing of job is low, variety will be more
Example : Drilling,casting, Heating, painting, Assembly.
Tailoring: Marking, cutting, stiching , Ironing and packing.
Advantages:
• Lower initial capital investment is requiered.
• The overhead cost are relatively low.
• There is high degree of machine utilization as the machine is not
blocked for a single product.
• Breakdown of one machine doesnot disturb the production process
• Supervision can be more effective and specialized
• Greater flexibility of resources are achieved through this process.
Dis- advantages:
• High Material Handling cost
• More skilled labor is required
• More WIP inventory
• Frequent inspection is needed
Combined layout
• A combination of process and product layout is known as combined
layout.

• Manufacturing concerns where several products are produced in

repeated numbers without the likelihood of continuous production.
Examples : Files, hacksaws, circular metal saws, wood saws…etc
Fixed position layout
• Men and equipment are moved to the material, Which remains at
one place and the product is completed at that place where the
material lies. This is also called static position layout.
Example : Ship building, Aircraft manufacturing , Big pressure vessels
fabrications.
Advantages :
The invesment on layout is very small
Flexible
Adjustments can be made to meet shortage of materials or labour by
changing the sequence of operation.
Dis- advantages
• Capital investment is very high
• Very large space is required for storage of material and equipment
near the product
• Confusion may occur.
1.4 Facilities Design functions
• Facility layout and Design is an important component of a business’s overall
operation, both in terms of maximizing the effectiveness of the production
process and meeting the needs of employees.
• OBJECTIVES
• The basic objective of layout is to ensure a smooth flow of work, material and
information through a system.
1. Effictively utilizing people, equipment,space, Energy.
2. Provide for continuous improvement throughout facility life cycle
3. Promote user safety and satisfaction
4. Facilitate productivity gains and cost reduction
5. Promote ease of maintenance
6. Minimize capital investment.