LIYANA NORIZAN DIS 2016
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. If at all changed only at considerable loss, the
location should be selected as per its own requirements and
circumstances. Each individual plant is a case in itself.
IDEAL LOCATION
An ideal location is one where the cost of the product is kept to
minimum, with a large market share, the least risk and the maximum
social gain. It is the place of maximum net advantage or which gives
lowest unit cost of production and distribution.
LIYANA NORIZAN DIS 2016
MAKING LOCATION DECISION
ANALYSIS SHOULD FOLLOW 3 STEP PROCESS:
1. IDENTIFY DOMINANT LOCATION FACTORS
2. DEVELOP LOCATION ALTERNATIVES
3. EVALUATE LOCATIONS ALTERNATIVES
PROCEDURES FOR EVALUATION LOCATION ALTERNATIVES INCLUDE
FACTOR RATING METHOD
LOAD-DISTANCE MODEL
CENTER OF GRAVITY APPROACH
BREAK-EVEN ANALYSIS
TRANSPORTATION METHOD
LIYANA NORIZAN DIS 2016
FACTORS GOVERNING A PLANT LOCATION
LIYANA NORIZAN DIS 2016
FACTORS GOVERNING A PLANT LOCATION
LIYANA NORIZAN DIS 2016
PLANT LAYOUT
PLANT LAYOUT PLANNING INCLUDES DECISIONS REGARDING THE PHYSICAL
ALLOCATION OF THE ECONOMIC ACTIVITY CENTERS IN A FACILITY.
AN ECONOMIC ACTIVITY CENTER IS ANY
ENTITY OCCUPYING SPACE.
FACILITY LAYOUT TECHNIQUES APPLY TO THE
CASE WHERE SEVERAL PHYSICAL MEANS
HAVE TO BE LOCATED IN A CERTAIN AREA,
EITHER INDUSTRIAL PROCESSES OR SERVICES.
LIYANA NORIZAN DIS 2016
PLANT LAYOUT
A facility layout is an arrangement of everything needed for
production of goods or delivery of services. A facility is an entity
that facilitates the performance of any job. It may be a machine
tool, a work centre, a manufacturing cell, a machine shop, a
department, a warehouse, etc. (Heragu, 1997).
The layout design generally depends on the products variety and
the production volumes. Four types of organization are referred
to, namely fixed product layout, process layout, product layout
and cellular layout (Dilworth, 1996).
LIYANA NORIZAN DIS 2016
OBJECTIVE OF PLANT LAYOUT
THE OBJECTIVE OF PLANT LAYOUT PLANNING IS A MORE
EFFECTIVE WORK FLOW AT THE FACILITY, ALLOWING SENSE OF UNITY
MINIMUM MOVEMENT
WORKERS AND EQUIPMENT BEING MORE PRODUCTIVE. - PEOPLE
- MATERIAL
- RESOURCES
THE OBJECTIVE OF LAYOUT STRATEGY IS TO DEVELOP SAFETY
AN EFFECTIVE AND EFFICIENT LAYOUT THAT WILL MEET FLEXIBILITY
THE FIRMS COMPETITIVE REQUIREMENTS
LIYANA NORIZAN DIS 2016
PRINCIPLE OF PLANT LAYOUT
1. Integration of all factors/resources - (men, machines and materials)
in order to give an optimum level of production
2. Minimum movement minimum movement of resources available
leads to cost reduction
3. Unidirectional flow All materials should progressively move towards
the same direction
4. Efficient space handling
5. Safety
LIYANA NORIZAN DIS 2016
PRINCIPLE OF PLANT LAYOUT
6. Maximum observation capacity
7. Maximum accessibility
8. Minimum handling
9. Maximum protection
10. Maximum flexibility
LIYANA NORIZAN DIS 2016
PLANT LAYOUT PROCEDURE
Immers Basic Steps (1950)
Naddlers Ideal System Approach (1961)
Muthers Systematic Layout Planning (1961)
Reeds Plant Layout Procedure (1961)
Apples Plant Layout Procedure (1977)
LIYANA NORIZAN DIS 2016
PLANT LAYOUT PROCEDURE
i. Analyze the product to be produced
ii. Determine the process required to manufacture the product
iii. Prepare layout planning charts
iv. Determine work stations
v. Analyze storage area requirements
vi. Establish minimum aisle widths
vii. Establish office requirements
viii. Consider personnel facilities and services
ix. Survey plant services
x. Provide for future expansion
LIYANA NORIZAN DIS 2016
REASONS FOR FACILITIES LAYOUT
Productivity improvements through elimination or reduction of unnecessary activities
Improved health and safety
To conserve and reduce consumption of energy
Lower the risk of fire, lower maintenance costs, etc.
Minimize material handling cost
Minimize overall production time
Effectively utilize existing space
Provide for employee convenience
Assure workplace safety and comfort
Facilitate the manufacturing process
LIYANA NORIZAN DIS 2016
TYPES OF LAYOUT
The production process normally determines the type of plant layout to be
applied to the facility:
Fixed position plant layout
Product stays and resources move to it.
Product oriented plant layout
Machinery and Materials are placed following the product path.
Process oriented plant layout (Functional Layout).
Machinery is placed according to what they do and materials go to them.
Cell Layout
Hybrid Layout that tries to take advantage of different layouts types.
LIYANA NORIZAN DIS 2016
PROCESS LAYOUT
Process oriented plant layout (Functional / Job-shop Layout)
This type of plant layout is useful when the production process is organized in
batches.
Personnel and equipment to perform the same function are allocated in the
same area.
The different items have to move from one area to another one, according to
the sequence of operations previously established.
The variety of products to produce will lead to a diversity of flows through the
facility.
The variations in the production volumes from one period to the next one
(short periods of time) may lead to modifications in the manufactured
quantities as well as the types of products to be produced.
LIYANA NORIZAN DIS 2016
PROCESS LAYOUT
Advantages:
Greater flexibility with regard to work distribution to machinery and personnel. Adapted to frequent changes in sequence of
operations.
Lower investment due to general purpose machines; which usually are less costly than special purpose machines.
Higher utilisation of production facilities; which can be adapted to a variety of products.
Variety of jobs makes the work challenging and interesting.
Breakdown of one machine does not result in complete stoppage of work.
Disadvantages:
Backtracking and long movements occur in handling of materials. As such, material handling costs are higher.
Mechanisation of material handling is not possible.
Production planning and control is difficult
More space requirement; as work-in-progress inventory is high-requiring greater storage space.
As the work has to pass through different departments; it is quite difficult to trace the responsibility for the finished product.
LIYANA NORIZAN DIS 2016
PROCESS LAYOUT
LIYANA NORIZAN DIS 2016
PRODUCT LAYOUT
Product oriented plant layout
This type of plant layout is useful when the production process is
organized in a continuous or repetitive way.
Continuous flow: The correct operations flow is reached through the
layout design and the equipment and machinery specifications.
Repetitive flow (assembly line): The correct operations flow will be based
in a line balancing exercise, in order to avoid problems generated by
bottle necks.
The plant layout will be based in allocating a machine as close as
possible to the next one in line, in the correct sequence to
manufacture the product.
LIYANA NORIZAN DIS 2016
PRODUCT LAYOUT
Advantages:
Reduced material handling activities.
Work In Process almost eliminated.
Minimum manufacturing time.
Simplification of the production planning and control systems.
Tasks simplification.
Disadvantages:
No flexibility in the production process.
Low flexibility in the manufacturing times.
High capital investment.
Every workstation is critical to the process.
The lack of personnel or shut down of a machine stops the whole process.
Monotonous work.
LIYANA NORIZAN DIS 2016
PRODUCT LAYOUT
LIYANA NORIZAN DIS 2016
FIXED POSITION LAYOUT
Layout in which the product or project remains stationary, and workers, materials
and equipment are moved as needed.
Examples: large construction (buildings, power plants, dams, etc), shipbuilding,
production of large aircraft, rockets used to launch space missions, etc.
LIYANA NORIZAN DIS 2016
FIXED POSITION LAYOUT
Advantages:
Saves time and cost in movement.
Flexible as changes in job design can be easily incorporated.
More economical when several orders in different stages are executed.
Adjustments can be made to meet shortage of materials or absence of workers.
Disadvantages:
Production period being very long, capital investment is quite heavy.
Very large space is required for storage of materials and equipment.
As several operations are carried simultaneously, possibility of confusion and
conflicts are high.
LIYANA NORIZAN DIS 2016
FIXED POSITION LAYOUT
LIYANA NORIZAN DIS 2016
PLANT LAYOUT PROCESS SELECTION
Processes convert inputs into outputs
Process selection involves making choices concerning the way an
organization will produce its products or provide services to its
customers.
It has major implications for capacity planning, layout and work
methods.
It affects the entire organization and its ability to achieve its mission
and effective supply chain system.
Process selection may lead to automation or computer-aided
manufacturing
LIYANA NORIZAN DIS 2016
PLANT LAYOUT PROCESS SELECTION
Key aspects to consider in process selection :
# Capital Intensity The mix of equipment and labor that will be used by the
organization
# Process Flexibility The degree to which the system can be adjusted to
changes in product or service design, changes in volume
processed and changes in technology
How much variety
in products or What degree of What is the
services will the equipment expected volume
system need to flexibility will be of output
handle needed
LIYANA NORIZAN DIS 2016
TYPES OF PLANT LAYOUT PROCESSES
Job shop: Job shops are used to produce a low volume of each of a large variety of products
or services. Equipment flexibility must be high to handle the high variety of jobs.
Batch: Batch processing involves less variety, less need for equipment flexibility, and higher
volumes of each type of product.
Repetitive: Repetitive processing has even less variety, less need for equipment flexibility,
and higher volume.
Continuous: Continuous processing has the lowest variety, the lowest need for equipment
flexibility, and the highest volume.
Projects
LIYANA NORIZAN DIS 2016
TYPES OF PLANT LAYOUT PROCESSES
Job shops and batch processing are classified as intermittent systems,
meaning that output frequently switches from one product or service to
another.
Repetitive and continuous systems are classified as continuous processing
because there is little or no switching from one product to another.
Projects are used for non-routine work that is intended to meet a given set
of objectives in a limited time frame. Job variety is high, volume is usually
low, and equipment flexibility needs can range from low to high.
LIYANA NORIZAN DIS 2016
TYPES OF PLANT LAYOUT PROCESSES
LIYANA NORIZAN DIS 2016
TYPES OF PLANT LAYOUT PROCESSES
LIYANA NORIZAN DIS 2016
TYPES OF PLANT LAYOUT PROCESSES
LIYANA NORIZAN DIS 2016
TYPES OF PLANT LAYOUT PROCESSES
LIYANA NORIZAN DIS 2016
TYPES OF PLANT LAYOUT PROCESSES
LIYANA NORIZAN DIS 2016
