Chapter two

Plant design and work environment

Plant:- is a factory or an organization or an industry comprising
building, machines, and other facilities of production together.
 It is a collection of process units with similar process parameters or
related by feeding or taking feed from each other.
Plant design: optimized work of the plant that minimizes possible
factors of production and market.
Plant location: Plant location is a strategic decision over
several factors that influences plant layout. The main objective of
any business is to optimize its cost and revenue that is,
minimize its costs and maximize its returns.

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The degree of significance for the selection of location for
any enterprise mainly depends on its size and nature.
 large scale industries requiring huge amount of investment so that
many considerations other than the local demand in the selection
of proper plant location. these plants cannot be easily shifted
to other place and an error of judgment in the selection of site
can be vary expensive to the organization.
 However, small-scale industry mainly selects the site where in
accordance with its capacity; the local market available for its
products. It can easily shift to other place when there is any
change in the market.
 The primary goal of location decisions is to position each element
of the production/ distribution system effectively with respect to the
overall system.

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 Factors affecting plant location:
 Nearness to Market: If the plant is located close to the market
the cost of transportation can be minimized. This also helps the
producers to have direct knowledge of the requirements of the
customers.
 Nearness to supply of raw materials: As far as possible the site
selected should be near the source of raw materials, so that the cost
of transportation can be minimized and storing cost can be reduced due
to shorter lead time.
 Availability of labor: Availability of right kind of labor force in
required number at reasonable rates is also a deciding factor in selection
of site
 Transport and communication facilities: Generally, industries have a
tendency to locate the industrial units near the railway station, highway or
port areas.

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Availability of power and fuel: Coal, electricity, oil and
natural gas are the important sources of power in the industries.
E.g..: Tata iron and steel industry is established near the coalmines of
Bihar.
Climatic conditions: Climatic conditions largely affect certain
production processes and also the efficiency of the employees.
E.g..: Textile mills require moist climate that why these plant
located at Mumbai and Ahmedabad.
Availability of water: Water is used in industries for
processing as in paper in chemical industries, for generation of
power in hydroelectric power, plants and also required for
drinking sanitary purpose also.

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Ancillary industries: Many industries such as
processing and assembly industries are not producing
all the parts of their product but purchase some of
the parts from ancillary industries producing it.

Financial and other aids: For the development of

backward regions central as well as state government
provide certain incentives and facilities such as cash
subsides, concession financial assistance, land, power
and other facilities at cheaper rates, tax concession etc.

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 plant Design Objectives
Minimize costs (of material handling operations) for a
give sets of throughput, storage and flow time
requirements.

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1. Enable and support the activity
− Enable the throughput requirements, the storage requirements, and
the flow time requirements.

2. Flexibility and toughness

− The design should be flexible and strong enough to accommodate
changes and system breakdowns.
3. Quality and safety
4. Customer satisfaction
5. Legal factors

Plant Layout: A technique of locating machines, processes and

plant services within the factory in order to secure the greatest possible output of
high quality at the lowest possible total cost of production

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 Types of Layout

1. Process
2. Product
3. Cellular
4. Fixed position
5. Hybrid (mixed)

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 Process Layout
 Used when the operations system must handle a wide variety of

products in relatively small volumes (i.e., flexibility is necessary)

 Designed to facilitate processing items or providing services that

present a variety of processing requirements.

 The layouts include departments or other functional groupings in

which similar kinds of activities are performed.

 A manufacturing example of a process layout is the machine shop,

which has separate departments for milling, grinding, drilling, and so

on.
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 Process-type layout

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 Characteristics of Process Layouts
 General-purpose equipment is used

 Changeover is rapid

 Material handling equipment is flexible

 Operators are highly skilled

 Technical supervision is required

 Planning, scheduling and controlling functions are challenging

 Production time is relatively long

 In-process inventory is relatively high

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 Process Layout
Advantages:
1. In process layout machines are better utilized and fewer machines are required.
2. Flexibility of equipment and personnel is possible in process layout.
3. Lower investment on account of comparatively less number of machines and lower cost of
general purpose machines.
4. The diversity of tasks and variety of job makes the job challenging and interesting.
5. Supervisors will become highly knowledgeable about the functions under their department.
Limitations
6. Backtracking and long movements may occur in the handling of materials thus, reducing
material handling efficiency.
7. Material handling cannot be mechanized which adds to cost.
8. Process time is prolonged which reduce the inventory turnover and increases the in-process
inventory.
9. Lowered productivity due to number of set-ups.
10. Throughput (time gap between in and out in the process) time is longer.
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 Product (Assembly Line) Layout
 Product layouts are used to achieve a smooth and rapid flow of large

volumes of products or customers through a system.

 A job is divided into a series of standardized tasks, permitting

specialization of both labor and equipment.

 Operations are arranged in the sequence required to make the

product. For instance, if a portion of a manufacturing operation

required the sequence of cutting, polishing, and painting, the

appropriate pieces of equipment would be arranged in that sequence.

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 Characteristics of Product Layouts
 Special-purpose equipment are used

 Changeover is expensive and lengthy

 Material flow is continuous

 Material handling equipment is fixed

 Little direct supervision is required

 Planning, scheduling and controlling functions are relatively straight-

forward
 Production time for a unit is relatively short

 In-process inventory is relatively low

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Advantage

1. The flow of product will be smooth and logical in flow lines.

2. Through put time is less.

3. Simplified production planning and control systems are possible.

4. Less space is occupied by work transit and for temporary storage.

5. Reduced material handling cost due to mechanized handling systems and straight flow.

6. Perfect line balancing which eliminates bottlenecks and idle capacity.

7. Manufacturing cycle is short due to uninterrupted flow of materials.

8. Small amount of work-in-process inventory.

9. Unskilled workers can learn and manage the production.

Limitations

10. A breakdown of one machine in a product line may cause stoppages of machines in the downstream of the

line.

11. Lack of flexibility: A change in product design may require major alterations in the layout.

12. The line output is decided by the bottleneck machine.

13. Comparatively high investment in equipments is required.

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 Cellular Manufacturing (CM) Layout
 Cellular manufacturing is a type of layout in which machines are
grouped into what is referred to as a cell.
 Groupings are determined by the operations needed to perform
work for a set of similar items, or part families that require similar
processing.
 Cellular layout provides faster processing time, less material
handling, less work-in-process inventory, and reduced setup time.
 Used when the operations system must handle a moderate variety
of products in moderate volumes
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 Cellular Layout

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 Fixed-Position Layouts
 In fixed-position layouts, the materials or major components remain in a

fixed position, and workers, materials, and equipment are moved as

needed.

 Fixed-position layout is used when product is very bulky, heavy or fragile

 Fixed-position layouts are used in large construction projects (buildings,

power plants, and dams), shipbuilding, and production of large aircraft

and space mission rockets.

 Fixed-position layouts are widely used for farming, firefighting, road

building, home building, remodeling and repair.

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 Hybrid (mixed) Layouts
 Actually, most manufacturing facilities use a combination of layout types.

 An example of a hybrid layout is where departments are arranged according

to the types of processes but the products flow through on a product layout.
 For instance, supermarket layouts are fundamentally of a process nature,

and however we find most use fixed-path material-handling devices such as

roller-type conveyors both in the stockroom and at checkouts, and belt-type
conveyors at the cash registers.
 Hospitals also use the basic process arrangement, although frequently

patient care involves more of a fixed-position approach, in which nurses,

doctors, medicines, and special equipment are brought to the patient.
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 Examples of Machine Arrangements

a) IN PARALLEL

a) IN SERIES

a) COMBINED

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plant

Location Methods
There are many analytical techniques that can be used in
facility location decision. Some of these are:
1) Factor Rating
2) Cost-Profit-Volume analysis
3) Center of Gravity Method, and

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Method of Factor Rating
STEPS:
1. Identify the Most Important Factors in evaluating alternative
sites for the new facility.
2. Assign a weight to each of these factors.
3. Determine the scores of each site for each of the factors
4. Rate each alternative location based on these factor weights.
5. Select the most weighted alternative as the best alternative.

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Example
Abdi Ltd. is considering three alternative sites for
its new facility.
After evaluating the firm’s Needs, the Managers
have Narrowed the list of Important Selection
Criteria down into three major Factors.
- Availability of skilled labor
- Availability of Raw materials, and
- Nearness to the firm’s markets.

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Example
Weights reflecting the relative importance of
each factor have been assigned as follows:

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Example
Based on these criteria, the three
Alternative sites were scored between
0 and 100 points:

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 Example
Now we will multiply each score by its corresponding
factor weight:
Weighted scores are calculated as: (Site
Score)x(Factor Weight) = (70*0.50)= 35

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Example
From these results, the largest total weight is Site A.
It appears to be the best location.

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Example
What happens if we change the factor weights. Lets
use the following factor weights:
Skilled labor: 0.45; Raw Materials: 0.40; and Market:
0.15
Then the following results are obtained:

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Example

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Example Limitation
In this case, Site C appears to be the best
choice with largest weight score.
Therefore, factor rating method is very
sensitive to the weights assigned to each factor.

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Example
Since factor weights, selected factors, and
assigned scores are all determined subjectively,
the managers should be very careful in
selecting these items and numbers.

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Cost-Profit-Volume Analysis
When the fixed and
variable costs for each
site differ, Cost-
profit-volume analysis
can be used to
identify the location
with the lowest cost.

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Example
Foster Paper Ltd. is considering three alternative sites
for its new production facility.
The Annual Production Cost associated with each
alternative is a linear function of the production
volume. That is

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Example
Total Production Cost = (Fixed Cost) + (variable unit
cost) x (annual production volume)

Assume that The expected annual production volume

is 250,000 units.
And further assume that:
(x: production volume = 250,000)

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 Example

For Site A: Prod. Cost = 10,000,000 + 250 x

For Site B: Prod. Cost = 25,000,000 + 150 x
For Site C: Prod. Cost = 60,000,000 + 50 x

Based on these information, Which site has the lowest

cost?

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Example
For Site A: Prod. Cost = 10,000,000 + 250 (250,000) =
72,500,000
For Site B: Prod. Cost = 25,000,000 + 150
(250,000) = 62,500,000
For Site C: Prod. Cost = 60,000,000 + 50 (250,000)
= 72,500,000
So At a production volume of 250,000 units, site B
has the lowest cost.

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Example

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Example
This graphic shows that annual production cost changes

with different production volumes.

-If the expected annual production volume is below

150,000 units, then choose site A.

-If the expected annual production volume is between

150,000 and 350,000 units, then choose site B.

-If the expected annual production volume is over

350,000 units, then choose site C.

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 ERGONOMICS...
The term "ergonomics" is derived from two Greek words:
"ergon," meaning work, and "nomoi," meaning natural laws.
Ergonomists study human capabilities in relationship to work
demands.
Ergonomics is the science and the art of fitting the job and

the workplace to workers’ needs.

 Ergonomics is valid to remove musculoskeletal disorder in Your
body followed by symptoms such as fatigue, discomfort, and
pain.
Musculoskeletal disorders (MSDs) are conditions that affect your
body’s muscles, joints, tendons, ligaments, and nerves. MSDs can
develop over time or can occur immediately due to overload.

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 Prevention of Musculoskeletal Disorders in the
Workplace

Musculo-skeletal disorders (MSDs): affect the muscles, nerves

and tendons. Workers in many different industries and occupations
can be exposed to risk factors at work, such as lifting heavy items,
bending, reaching overhead, pushing and pulling heavy loads,
working in awkward body postures and performing the same or
similar tasks repetitively. Exposure to these known risk factors for
MSDs increases a worker's risk of injury, and lose of production
time at all.
But work-related MSDs can be prevented. Ergonomics --- fitting a
job to a person --- helps lessen (minimize) muscle fatigue, increases
productivity and reduces the number and severity of work-related
MSDs.

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 A Process for Protecting Workers

Employers are responsible for providing a safe and healthful

workplace for their workers.
In the workplace, the number and severity of MSDs resulting from
physical overexertion, as well as their associated costs, can be
substantially reduced by applying ergonomic principals. The
following are important elements of an ergonomic process:
 Provide Management Support - A strong commitment by
management is critical to the overall success of an ergonomic
process. Management should define clear goals and objectives for
the ergonomic process, discuss them with their workers, assign
responsibilities to designated staff members, and communicate
clearly with the workforce.
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 Involve Workers:- A participatory ergonomic approach, where workers
are directly involved in worksite assessments, solution development and
implementation is the essence of a successful ergonomic process. Workers
can:

 Identify and provide important information about hazards in their

workplaces.
 Assist in the ergonomic process by voicing their concerns and
suggestions for reducing exposure to risk factors and by evaluating the
changes made as a result of an ergonomic assessment.
 Provide Training - Training is an important element in the ergonomic
process. It ensures that workers are aware of ergonomics and its
benefits, become informed about ergonomics related concerns in the
workplace, and understand the importance of reporting early symptoms
of MSDs.

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 Identify Problems - An important step in the ergonomic process is
to identify and assess ergonomic problems in the workplace before
they result in MSDs.

 Encourage Early Reporting of MSD Symptoms - Early reporting

can accelerate the job assessment and improvement process, helping
to prevent or reduce the progression of symptoms, the development
of serious injuries, and subsequent lost-time claims.
 Implement Solutions to Control Hazards - There are many
possible solutions that can be implemented to reduce, control or
eliminate workplace MSDs.

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Evaluate Progress:- Established evaluation and
corrective action procedures need to be in place to
periodically assess the effectiveness of the ergonomic
process and to ensure its continuous improvement and
long-term success.
 As an ergonomic process is first developing, assessments
should include determining whether goals set for the
ergonomic process have been met and determining the
success of the implemented ergonomic solutions.

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 Benefits of Ergonomics
• Decreased injury risk
• Decreased
mistakes/rework
• Decreased turnover
• Decreased lost work days
(absence)
• Increased efficiency
• Increased productivity
• Improved morale

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Industrial Safety :
Safety is the state of being “safe”, the condition of being protected
against physical, social, spiritual, financial, or other types or
consequences of failure, damage, error, accidents, harm or any
other event which could be considered non-desirable.

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 Project-1:Project on Plant Location
 Suppose Oda Bultum University after consultation with responsible
government bodies decide to expand Jalo Campus in to two branches
including the existing campus(main campus).Hence, assume your group
requested to find ,select and propose the best location/campuses for college
of Engineering and Technology,College of Natural and Computational
sciences, School of computing and informatics , School of Business and
Economics, School of Behavuoral and humanities sciences and law in East
Hararge zone , East Oromia.
 List out the principal factors to be taken into consideration for this project
and follow plant location steps like giving weight and rating for each factors
with convincing justifications to select/propose the best site.
Notes:
 For more information about East Hararge zone you can consult Chiro city
administrators or you can possibly browse from Google.
 All the weights and ratings given to each factors should be critically and
exhaustively analyzed as much as possible
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Group project work-2:Plant Layout
B e in group of your 1 to 5 to design an
improved plant layout for the following:
1) Oda Bultum Jalo Campus facility layout(2)
2) Student cafeteria layout/arrangement
3) Computational Library layout/arrangement
4) Main Library layout/arrangement
5) existing workshop layout/arrangement
6) New workshop layout/arrangement
7) One of Electrical Workshop layout/arrangement
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