OPERATIONS MANAGEMENT

Lecture 10
(Facility Layout)

Teacher:
ISMATULLAH BUTT
PhD (Candidate)
 Facility Layout-Defined
2

 Plant/Facility layout refers to the arrangement of physical

facilities such as machines, equipment, tools, furniture etc. in
such a manner so as to have quickest flow of material at the
lowest cost and with the least amount of handling in processing
the product from the receipt of raw material to the delivery of
the final product.
 Layout planning is deciding the best physical arrangement of
all resources within a facility.
 Facility resource arrangement can significantly affect
productivity.
 Determinants of plant layout
3

1. Type Of Product (size, shape and quality)

2. Type Of Process (technology employed, sequencing etc)

3. Volume Of Productions- (increase or decrease)

 Importance of plant layout
4

 It is long-term commitment.
 It facilitates the production process, minimizes material
handling, time and cost, and allows flexibility of operations.
 It facilitates easy production flow, makes economic use of the
building, promotes effective utilization of manpower, and
provides for employee’s convenience, safety, comfort at work,
maximum exposure to natural light and ventilation.
 it affects the flow of material and processes, labor efficiency,
supervision and control, use of space and expansion
possibilities.
 Objectives of plant layout-i
5

 Proper and efficient utilization of available floor

space
 To ensure that work proceeds from one point to
another point without any delay
 Provide enough production capacity
 Reduce material handling costs
 Reduce hazards to personnel •
 Utilize labour efficiently
 Increase employee morale
 Objectives of plant layout-ii
6

 Reduce accidents
 Provide ease of supervision and control
 Provide employee safety and health
 Allow ease of maintenance
 Allow high machine or equipment utilization
 Improve productivity
 To minimize cost of productions
 Better inter department relationship
 Factors Influencing Plant Layout
7

1. Factory building :- The nature and size of the

building determines the floor space available for
layout. While designing the special requirements,
e.g. air conditioning, dust control, humidity control
etc. must be kept in mind.
2. Nature of product :- Product layout is suitable for
uniform products whereas process layout is more
appropriate for custom-made products.
 Factors Influencing Plant Layout
8

3. Production process :- In assembly line industries, product layout

is better. In job order or intermittent manufacturing on the other
hand, process layout is desirable.
4. Type of machinery: General purpose machines are often
arranged as per process layout while special purpose
machines are arranged according to product layout.
5. Repairs and maintenance :- Machines should be so arranged
that adequate space is available between them for movement
of equipment and people required for repairing the machines.
 Factors Influencing Plant Layout
9

6. Human needs :- Adequate arrangement should be made for

cloakroom, washroom, lockers, drinking water, toilets and other
employee facilities, proper provision should be made for
disposal of effluents, if any.
7. Plant environment :- Heat, light, noise, ventilation and other
aspects should be duly considered, e.g. paint shops and
plating section should be located in another hall so that
dangerous fumes can be removed through proper ventilation
etc. Adequate safety arrangement should also be made.
8. Management policies :- management policies regarding size,
quality, employee facilities and delivery schedules should be
considered while deciding plant layout.
 Principles of plant layout
10

1. Principle of minimum movement

2. Principle of flow
3. Principle of space
4. Principle of safety
5. Principle of flexibility
6. Principle of interdependence
7. Principle of overall integration
8. Principle of minimum investment
 Types of Layouts
11

1. Product or line layout

2. Process or functional layout

3. Fixed position or location layout

4. Combined or group layout

 The nature of the basic layout types

Manufacturing Basic layout Service

process types types process types
Project processes
Project processes Fixed Professional
position layout services

Jobbing processes
Process layout
Service shops
Batch processes
Cell layout

Mass processes Mass services

Product layout
Continuous processes

12
 Volume-variety relationship
Flow is Low High
Volume
intermittent

High
Fixed-position
layout

Regular flow more feasible

Process
layout
Variety

Cell layout

Product
layout

Flow
Low

becomes
continuous
Regular flow more important
13
 1. Product or line layout (a)
14

 Under this, machines and equipments are arranged in one line

depending upon the sequence of operations required for the
product.
 The materials move from one workstation to another
sequentially without any backtracking or deviation.
 Under this, machines are grouped in one sequence. Therefore
materials are fed into the first machine and finished goods
travel automatically from machine to machine, the output of
one machine becoming input of the next.
 Product or line layout (b)
15

 e.g. in a paper mill, bamboos are fed into the machine at one
end and paper comes out at the other end. The raw material
moves very fast from one workstation to other stations with a
minimum work in progress storage and material handling.
 The grouping of machines should be done keeping in mind the

following general principles.

a) All the machine tools or other items of equipments must be
placed at the point demanded by the sequence of operations.
b) There should no points where one line crossed another line.
c) All the operations including assembly, testing, packing must be
included in the line
 An army induction centre with uses product layout

Waiting Waiting
Lecture theatre area area

Blood
Doctor Doctor test
Uniform X-ray Record
issuing personal
area history and
Blood medical
Doctor Doctor test details
X-ray

Blood
Doctor Doctor test
Uniform
store X-ray

16
 Suitability of product layout
17

1. Mass production of standardized products

2. Simple and repetitive manufacturing process
3. Operation time for different process is more or less equal
4. Reasonably stable demand for the product
5. Continuous supply of materials.
 Therefore, the manufacturing units involving continuous

manufacturing process, producing few standardized products

continuously on the firm’s own specifications and in anticipation
of sales would prefer product layout e.g. chemicals, sugar,
paper, rubber, refineries, cement, automobiles, food processing
and electronics etc.
 2. Process or functional layout (a)
18

 In this type of layout machines of a similar type are arranged

together at one place. E.g. Machines performing drilling
operations are arranged in the drilling department, machines
performing casting operations be grouped in the casting
department. Therefore the machines are installed in the plants,
which follow the process layout.
 The work, which has to be done, is allocated to the machines
according to loading schedules with the object of ensuring that
each machine is fully loaded.
 Used when the operations system must handle a wide variety
of products in relatively small volumes (i.e., flexibility is
necessary)
 Process or functional layout (b)
19

 The grouping of machines according to the process

has to be done keeping in mind the following
principles:
1. The distance between departments should be as short
as possible for avoiding long distance movement of
materials.
2.The departments should be in sequence of operations
3.The arrangement should be convenient for inspection
and supervision
 An example of a process layout in a library
showing the path of just one customer
Loan books in subject order
On-line and
CD-ROM
access room

Study desks To
journal

Company reports
sack
Enquiries

Current
journals

Reference
section
Reserve
collection
Store Counter staff
room Copying area

Entrance Exit

20
 Suitability of process layout
21

 Products are not standardized

 Quantity produced is small

 There are frequent changes in design and style of product

 Job shop type of work is done

 Machines are very expensive.

Thus, process layout or functional layout is suitable for job order

production involving non-repetitive processes and customer
specifications and non-standardized products, e.g. tailoring,
light and heavy engineering products, made to order furniture
industries, jewelry.
 3.Fixed position or location layout
22

 In this type of layout, the major product being

produced is fixed at one location.
 Equipment labor and components are moved to that
location.
 All facilities are brought and arranged around one
work center.
 This type of layout is not relevant for small scale
entrepreneur. e.g. - shipbuilding
 Fixed Position Layout
23

Milling
Lathe Department Department Drilling Department
M M D D D D
L L
M M D D D D
L L

G G G P
L L

G G G P
L L
Grinding Painting Department
Department
L L
Receiving and A A A
Shipping Assembly
 Suitability of fixed position layout
24

 Manufacture of bulky and heavy products such as

locomotives, ships, boilers, generators, wagon
building, aircraft manufacturing, etc.
 Construction of building, flyovers, dams.
 4.Combined or group layout (a)
25

 Certain manufacturing units may require all three processes

namely intermittent process (job shops), the continuous process
(mass production shops) and the representative process
combined process
 In most of industries, only a product layout or process layout or
fixed location layout does not exist.
 Thus, in manufacturing concerns where several products are
produced in repeated numbers, Generally, a combination of
the product and process layout or other combination are found
in practice.
 4.Combined or group layout (b)
26

 e.g. for industries involving the fabrication of parts

and assembly, fabrication tends to employ the
process layout, while the assembly areas often
employ the product layout.
 In soap, manufacturing plant, the machinery
manufacturing soap is arranged on the product line
principle, but ancillary services such as heating, the
manufacturing of glycerin, the power house, the
water treatment plant etc. are arranged on a
functional basis.
 The ground floor plan of a department store showing
the sports goods shop-within-a-shop retail ‘cell’

Books
and
videos Footwear Sports shop Menswear

Perfume
& jewellery

Confectionery, Elevators
newspaper,
magazines and Women’s clothes
stationery

Luggage
and gifts
Entrance

27
 A restaurant complex with all four basic layout types

Line layout cafeteria

Cell layout buffet

Fixed-position layout
service restaurant

Desert

Starter
buffet

buffet
Main course
buffet Service line
Preparation

Oven
Process layout kitchen
Cool room
Freezer Vegetable prep Grill

28
 Recent trends in plant layout
29

 Plant layout is the art and science of bringing togather men,

materials, methods and supporting facilities in the form of a
given arrangements that suits individuals industrial activity to
have the benefits of profits maximizations through economy,
efficiency, effectiveness and productivity.
 The designing and instilling a layout is the responsibility of
Engineering and planning department.
 The process of preparing layout is an art and well as
science.
 Recent trends in plant layout
30

1. The use of computerized facilities design:

 The various techniques have been developed and

used in layout engineering such as ALDEP (Automated

layout design program), CORELAP (Computerized
relationship layout planning), CRAFT (computerized
related allocation of facilities technique), CALP
(computer Aided layout planning) etc.
 These and other programmes can save time and

effort in large and complex layout

 Recent trends in plant layout
31

2. The use of various tools and techniques for planning the

layout:
 Templates: It is a pattern which consists of thin plate of wood or metal
which serves as gauge or guide in mechanical work. A plant layout
template is a scaled representation of physical object in a layout.
 Model equipment: Model or three dimensional models represents
machinery installed in a factory. It is a replica or a miniature prototype of
machine and equipment. These show minor details and can be mounted on
a thick plastic sheet.
 Layout drawing: Layout drawings are the replica of a factory floor plan
showing the space management. It is blue print which indicates the total
square feet where all the equipment has to be arranged.
 Recent trends in plant layout
32

 Plot plan: Is a miniature of the entire factory

building including the facilities of workers.
 Line balance: is phase of assembly line study that
equally divides then works to be done among
workers so that the total number of employees
required is minimum. OR concepts like linear
programming, dynamic programming and optimal
methods are used to study line balance problem.
 Factory Building
33

 A ideal plant building is the one which is built to

house the most efficient layout that can be provided
for the process involved, and artificially attractive
and of such standard shape and design which is
flexible its use and expansive units construction.
 The building ensures functional smoothness of the
operation.
 It should be strong enough to withstand damages,
vibrations and heavy machines.
 Factors in Designing a Factory Building
34

 Adaptability.
 Expandability.
 Product and equipment.
 Employees facilities and services areas.
 Materials handling.
 Lighting, ventilation and air-conditioning.
 Fire protection.
 Security and services and maintenance.
 Facility Layout Planning
35

SUPPLEMENTARY

SLIDES
 Principles of plant layout
36

1. Principle Of Minimum Movement:

 As far as possible materials and labour should be moved over
minimum distances.
2. Principle of flow:
 The work areas should be arranged according to the sequence

of operations so that there is continuous flow of materials

without congestion.
 The layout should allow for easy movement of materials

without interruption or delay.

3. Principle of space:
 All available cubic space should be effectively used both

vertically and horizontally.

 PRINCIPLES OF PLANT LAYOUT
37

4. Principle of safety
 There should be consideration for safety and convenience of
workers.
 There should be built in provision for the safety and comfort.

5. Principle of flexibility
 Layout should be designed in the manner that production

facilities can easily be rearranged when it becomes necessary

in future on account of expansion and technological
advancement.
 Principles of plant layout
38

6. Principle of interdependence
 Interdependent operations and processes should be located in
close proximity to each other.
7.Principle of overall integration
 All the plant facilities and services should be fully integrated
into a single operating unit so as to maximize efficiency and
minimize costs of production.
8. Principle of minimum investment
 The layout should yield savings in fixed capital investment
through optimum utilization of available facilities.
 Advantages of product layout
39

1. Low cost of material handling, due to straight and short route

and absence of backtracking.
2. Smooth and uninterrupted operations.
3. Continuous flow of work.
4. Lesser investment in inventory and work in progress
5. Optimum use of floor space
6. Shorter processing time or quicker output
7. Less congestion of work in the process
8. Simple and effective inspection of work and simplified
production control
9. Lower cost of manufacturing per unit
 Disadvantages of product layout
40

1. High initial capital investment in special purpose

machine
2. Heavy overhead charges
3. Breakdown of one machine will hamper the whole
production process
4. Lesser flexibility as specially laid out for particular
product.
 Advantages of process layout
41

1. Lower initial capital investment in machines and equipments.

There is high degree of machine utilization, as a machine is not
blocked for a single product
2. The overhead costs are relatively low
3. Change in output design and volume can be more easily
adapted to the output of variety of products
4. Breakdown of one machine does not result in complete work
stoppage
5. Supervision can be more effective and specialized
6. There is a greater flexibility of scope for expansion
 Disadvantages of process layout
42

 Material handling costs are high due to backtracking

 More skilled labour is required resulting in higher
cost.
 Time gap or lag in production is higher
 Work in progress inventory is high needing greater
storage space
 More frequent inspection is needed which results in
costly supervision
 Advantages of fixed position layout
43

1. It saves time and cost involved on the movement of work from

one workstation to another.
2. The layout is flexible as change in job design and operation
sequence can be easily incorporated.
3. It is more economical when several orders in different stages
of progress are being executed simultaneously.
4. Adjustments can be made to meet shortage of materials or
absence of workers by changing the sequence of operations.
 Disadvantages of fixed position layout
44

 Production period being very long, capital

investment is very heavy
 Very large space is required for storage of
material and equipment near the product.
 As several operations are often carried out
simultaneously, there is possibility of confusion and
conflicts among different workgroups.