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8/7/2019 Facility location & Layout
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Facility location
Sameer Nikam
Pune University
8/7/2019 Facility location & Layout
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Need
To establish new venture
Expansion
Change in supply chain
Diversification
Change in government policy
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Factors affecting Plant Locationselection
Proximity to market
Proximity to raw material
Business Climate
Total cost
Infrastructure
Quality of labour
Free trade zone
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Factors affecting PlantLocation selection
Political risk
Government barrier
Trading block
Environmental regulation
Competitive advantage
Transportation
safety
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Example Paper and Plastic industries are mostly in Div and Daman
area
Steel Plants are located in central or East part of India Wine industries are in rural area.
Textile Mill are in west part of India
Sugar Mills are also in west
Nuclear plant
Automobile manufacturing Plant are near to market
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Facility Layout
8/7/2019 Facility location & Layout
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Plant Layout
Planning of Space requirement for facilities and
arranging them in the manner that ensures steady flow
of production with minimum overall cost.
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Poor Layout will create
Congesting
Disruption in material flow
Unnecessary material handling
Scrap and rework
Higher throughput time
Wasted movement
Inefficiency
High inventory
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Need New plant
Change in demand may lead to change in layout
NPI
Change in product design To improve efficiency
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Objective of layout decision Smooth flow of work, material, people, information Minimize material handling cost Labour utilization Space utilization Eliminate bottleneck Communication and coordination among different level
of working people Reduce manufacturing cycle time Safety & security Proper maintainance activity Flexible to adapt change Increase capacity
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Type of Layouts
Process Layout
Product Layout
Fixed Position Layout
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Process Layout It is known as functional layout, which group similar
activities together according to process theyperform.
Basically associated with Batch type production Product is less in qty
Sequence of operation can vary considerably
Can be used for retail shop.
Equipments used are general purpose Forklift is mostly used material handling equipments
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Advantage Flexibility
Break down of machine will not affect actualproduction
Worker are skilled at operating theequipments in their particular dept.
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Disadvantage Inefficiency
Movement from Dept to Dept can take moretime
Fluctuation in the workload
Require more storage space.
WIP inventory will be Excess. And Finished
goods inventory will be low.
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L
L
L
L
L
L
L
L
D
D
D
D
M
M
M
M
M
M
M
M
M
G
G
G
G
G
G
G
G
G
P
P
A
A
LatheMachine
Drill
Machine
Mill Machine
GrindingMachine
Assembly
Painting
W
W
W
W
Welding
Process Layout inManufacturing
Womenwear
Menwear
Shoe
Kidswear
Fashion
Accessories
Cosmetics Jewelry
Toys
Free gift
Process Layout inServices
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Product Layout Layout by sequence
Arranging work centers in line according to sequence of
operation that need to perform to assemble the product
Each product has its own line
Continuous flow of goods
Material moves in one direction
Use of special purpose machine is higher
Suitable for mass production or repetitive operation.
Demand should be stable
Volume will be high
Product should be standard not customize
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Cutter Lathe Inspection
Welding
Drill
AssemblyPaintingPacking
Flow of goods
Flow of goods
RawMaterial
FinishedGoods
use of automation is more compare to process layout. Conveyor is mostly used material handling equipments.
Continuous flow of raw material is important.
Output of one machine is input for next machine.
Example: Assembly line of Automobile, production line of Sugar,Cement
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Adv antage
Efficiency is higher
Requirement of aisle space is less.
WIP inventory is very low
Manufacturing cycle time is less
Material handling is low.
Production planning and control is easy.
This layout avoids production bottleneck.
Line balancing may eliminate bottleneck & idle time
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Disadv antage
Not flexible.
Any change in product or process will change the
layout
More expensive.
Breakdown to any work center will stop whole system.
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Fix Position Layout Fixed position Layout is used for project in which the
product can not be moved. Example : Ship, house, aircraft, heavy metal
fabrication Product remains stationary for the entire
manufacturing cycle. Use of equipments is low. Equipments are mostly outsource.
Fixed potion Layout is specialized for individualproject
Volume of production is very low
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Cellular layout
W1
W2
W3 W4
W5
W6 W1
W2
W3 W4
W5
W6 W1
W2
W3 W4
W5
W6
W1W1
W1
W1
W1 W1
W1W1
W1
W1
W1 W1
D1 D2 D3
D4 D5