Plant Layouts

Prepared by Bhakti JoshiJune 27, 2014

Class Activity

• Steel• Iraq• Indian Railways• US Economy• India’s Trade• NHAI Bonds• Excise Duty• Natural Gas• Stock markets• Defense Industry• Water Transport• Agricultural Prices• Banking

• Coal• Mutual Funds• Airlines• Employment• Consumer appliances• Anti-dumping duties• Cement• Telecommunication• Maharashtra Government• Non-Government Organizations• Mobile Phones• Premium Goods

Class Activity Review• 9 Teams• Constraints: 1 copy of 5 Newspapers; (Time is given)• 3 Teams hoarded on 1 Newspaper – Not Optimal• Couple of Teams had 1 resource writing maximum articles – Not optimal (No teamwork)• Many teams took photographs of articles, shared and collaborated newspapers with each

other – • Some teams had members not writing but allocating resources• Proof-reading/editing as a critical process was missing in all teams (though many teams

cross-checked for repetition of content)

Team 1

Team 2

Team 3

Team 4

Team 5

Team 6 Team 7

Team 8

Team 9

Max 4 5 4 3 5 7 6 5

Min 2 3 3 2 1 1 3 2

Total 12 16 15 11 16 14 17 1 16

Newspapers #

3 3 3 3 4 1 1 1 4

Examples

• Chemist shop• Tailor Shop• Kiraana • Restaurant• College• Grocery store in a mall• Movie Theatres

Organisation’s context…

There are plant layouts

“…floor plan for determining arranging the desired machinery and equipment of a plant to permit the quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of the raw materials to the shipment of the finished products.”

Why Layouts?

• Efficiency in use of workers and space• Minimisation of material handling costs• Elimination of unnecessary movements of

workers and materials• Minimisation of production and customer time• Elimination in delays• Safety and improved working conditions• Attainment of product/service quality

Types of Plant Layouts

PROCESS PRODUCT FIXED POSITION CELLULAR

COMBINATION

Process Layout: Example 1

Embroidery

StitchingSewing

Output

Process Layout: Example 2 (Metal)

Source: Google Images, Transtutors.com

*

* Lathe is a machine in which work is rotated about a horizontal axis and shaped by a fixed tool# Milling machine creates corrugated edges like in a coin

#

Process Layout

• Also known as functional layout

• Evolved from handicraft production

• Grouping the same kinds of machines in one department

Process Layout – Key Principles

• Minimum distance between departments

• Departments in a sequence of operations

• Convenience for inspection and supervision

Process Layout: Advantages and Disadvantages

Advantages

Flexibility

Cost

System Protection

Economies of Scale

Incentives for Workers

Disadvantages

Utilisation

Excess material handling

Difficulties in operations control

Is this layout meant for bulk orders or small orders?

Product Layout: Example

Making a boat …?

How was it made…?

What were it’s input…?

Could be taught…?

Could it be replicated …?

Product Layout

• Also known as straight- line layout

• Sequence of workstations interconnected in one line

• Work done in small amounts

Product Layout – Key Principles

• Specific volume to be manufactured/serviced

• Stable product demand

• Product Standardisation

• Continuous material supply

Product Layout: Advantages and Disadvantages

Advantages

Simplicity

Small Space

Optimum cost of materials

Time efficiency

Limited skill sets

Disadvantages

Dull and repetitive

Product variety is limited

Fault in one can affect all

Is this layout cost-effective? High capital

investments

Inelastic capacities

Fixed Position Layout: Example

• Paper boat versus the real one?

• Operations in hospitals?

• Manufacturing a plane

Fixed Position Layout: Example (Contd…)

Fixed Position Layout

• Job done at a fixed position• The main equipment/s, heavy materials, sub-

assemblies, etc., remain fixed• Completion done by movement of machines,

workers and tools

Fixed Position Layout: Advantages and Disadvantages

Advantages

Easy for immobile products

Flexibility

Possibly cost-effective

Feasible for large projects

Disadvantages

High capital investments

Large storage spaces

Careful planning

Can such layouts be discouraged completely?

Cellular Layout: Example 1

Source: http://www.teiminc.com/product_flow.htm

Cellular Layout: Example 2

Source: http://www.thefullwiki.org/Cellular_manufacturing

Cellular Layout

• Also known as functional layout• Suitable for large variety of products in small

volumes• Based on Group Technology (GT) principle– Parts with similar product design characteristics– Parts with similar process characteristics

Cellular Layout: Advantages and Disadvantages

Advantages

Flexibility

Small batches of production

Higher machine utilisation

Workers’ empowerment

Disadvantages

Requirement of skills

Possibility of imbalances

Disadvantages of process and

product layouts

What kind of businesses will require cellular layouts?

Low cost of production

Combination Layout

• Hybrid Layout

• Mixture of three main layouts

Projects• Identify your own business’ product/service • Determine the possible inputs • Determine the possible layout for this business intuitively• Find a real-life business providing your product/service• Determine their inputs, layouts, processes involved (in real-life) to provide

their product• Compare your imaginary and real business of the same product/service• Document it into a report• Present in your findings as a presentation• Report and presentation should be submitted in a CD with your team

members names and roll numbers.• NO hard copies will be accepted • Hard copy of the presentation’s agenda/TOC MUST be given

Email: bhaktij@gmail.comWebsite: www.headscratchingnotes.net