Facility location & Layout

8/7/2019 Facility location & Layout

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Facility location

Sameer Nikam

Pune University



Need

To establish new venture

Expansion

Change in supply chain

Diversification

Change in government policy



Factors affecting Plant Locationselection

Proximity to market

Proximity to raw material

Business Climate

Total cost

Infrastructure

Quality of labour

Free trade zone



Factors affecting PlantLocation selection

Political risk

Government barrier

Trading block

Environmental regulation

Competitive advantage

Transportation

safety



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



Facility Layout



Plant Layout

Planning of Space requirement for facilities and

arranging them in the manner that ensures steady flow

of production with minimum overall cost.



Poor Layout will create

Congesting

Disruption in material flow

Unnecessary material handling

Scrap and rework

Higher throughput time

Wasted movement

Inefficiency

High inventory



Need New plant

Change in demand may lead to change in layout

NPI

Change in product design To improve efficiency



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



Type of Layouts

Process Layout

Product Layout

Fixed Position Layout



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



Advantage Flexibility

Break down of machine will not affect actualproduction

Worker are skilled at operating theequipments in their particular dept.



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.



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



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



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



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



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.



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



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



Thankyou!

Facility location & Layout

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