PRODUCTION PLANNING

CONTROL
LECTURE# 15
PRODUCTION FACILITY
Benedikta Siboro, M.Sc
LEARNING OBJECTIVES
 Describe the concepts of plant location and plant layout
 Identify the various factors to be considered for selection of plant location from state/area to
the specific site
 Distinguish among the alternative patterns of plant layout
 Discuss the various factors influencing the choice of an initial layout and its subsequent
modification
SIGNIFICANCE
 Plant location or the facilities location problem is an important strategic level decision making
for an organization
 Improper plant location may lead to waste of all investments
FACILITY SCOPES
Location

Facility Facility Design System

Planning

Facility Design Production Facility Layout

Material Handling System

SPECIFIC FACTOR OF
FACILITY
Dominant Factors Specific for Manufacturing Company
 Labor supply and wages
 Proximity to market
 Proximity to supplier
 Proximity to material
 Infrastructure

Dominant Factors Specific for Service Company

 Proximity to market
 Location of competitors
 Residential density
 Traffic flow
 Site visibility
FACILITY LAYOUT
Defnition :
 Moore (1962) : 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

Goal :
 To maximize the profit by arrangement of all the plant facilities to the best advantage of total
manufacturing of the product
OBJECTIVES OF FACILITY
LAYOUT
Objectives:
 Minimizing material handling costs
 Efficient utilization of space and labor
 Eliminate bottlenecks and waste or redundant movement
 Facilitate
 organization structure
 communication and interaction between workers
 manufacturing process
 visual control
SCHEMA OF FACILITY
BASIC PRINCIPLE
 Integration Principle
 The principle of the minimum material transfer distance
 Flow of a Work Process
 Space Utilization
 Flexibility
 Satisfaction and Work Safety
TYPE AND CLASSIFICATION
OF LAY OUT
 Product Layout
 Process Layout
 Fixed Layout
 Group Technology/Cell layout
PRODUCT LAYOUT- FLOW
SHOP PRODUCTION

• Can be S-line, U-Shaped, L-Shaped, S-Shaped, O Shaped

• Only One or some product
• Big quantity to produce
• Example : assembly company
ADVANTAGES AND
DISADVANTAGES OF
PRODUCT LAYOUT
 Advantages

1. Large batches can be produced inexpensively

2. Material handling is minimum
3. In-process materials are minimized
4. It is easy to control these systems
5. Automation is more achievable and justifiable
 Disadvantages

1. They are inflexible, in that only one or very few products can be produced on them.
2. Set-up time for these systems is very large.
3. Duplicate tooling is required to replace worn tooling so that maintenance can be minimized.
PROCESS LAYOUT-JOB SHOP
PRODUCTION
- Small volume/quantity
- Difficult to line balancing
- One machine for many
functions/operations
- Low invest
- Ease to breakdown machine problem
ADVANTAGES AND
DISADVANTAGES OF PROCESS
LAYOUT
 Advantages

1. Greater flexibility
2. Better and more efficient supervision possible through specialization
3. Capacity of different product line can be expanded easily
4. Better utilization of men and machine

 Disadvantages

1. More floor spaces

2. More work in progress
3. More distance travelled by the product
FIXED LAYOUT

Application for big product that need more space to produce

High skill requirement
Equipment duplication
Example : ship building, train, plane
GROUP TECHNOLOGY/CELL
LAYOUT
 Layout in which machines are grouped into a cell that can process items that have similar
processing requirement