PLANT LAYOUT

TOPIC-6
WHAT IS PLANT LAYOUT?
LAYOUT PLANNING IN MANUFACTURING AND SERVICE
ORGANISATIONS DEALS WITH THE PHYSICAL
ARRANGEMENT OF VARIOUS RESOURCES THAT ARE
AVAILABLE IN THE SYSTEM WITH AN OBJECTIVE TO
IMPROVE THE PERFORMANCE OF THE OPERATING SYSTEM
THEREBY PROVIDING BETTER CUSTOMER SERVICE.

IMPLICATIONS OF LAYOUT
PLANNING
-LAYOUT PLANNING PROBLEM BEGINS WITH GOOD
UNDERSTANDING OF THE KEY FACTORS THAT INFLUENCE
LAYOUT DESIGN
EG.
BHEL- A HIGH VARIETY MANUFACTURER; THERE WILL NOT
BE A DOMINANT FLOW PATTERN;
MUL- A HIGH VOLUME MANUFACTURER; HAVE A DOMINANT
FLOW PATTERN,

THE RELATIONSHIP BETWEEN VOLUME- VARIETY-
FLOW PROVIDES CRUCIAL INPUTS TO THE LAYOUT
PROBLEM.
VOLUME-VARIETY-FLOW: IMPLICATIONS FOR
LAYOUT PLANNING
VERY LOW
VARIETY
MEDIUM VARIETY HIGH
VARIETY
ONE-OFF
EXECUTION
FLOW
ATTRIBUTES
STREAM LINED
FLOW
MULTIPLE FLOW
PATHS
DISORGANIS-
ED FLOW
JUMBLED FLOW
VOLUME
ATTRIBUTES
HIGH VOLUME MID-VOLUME LOW VOLUME ONE PIECE
EG
PROCESS
INDUSTRY
MASS
PRODUCT/
SERVICE
PROVIDER
BATCH
MANUFACTURING
FIRMS
JOB SHOPS;
CUSTOMISED
PRODUCT/SE
RVICE
PROVIDER

PROJECT
SHOPS
TYPES OF
LAYOUT USED
LINE LAYOUT;
PRODUCT
LAYOUT
GROUP
TECHNOLOGY
LAYOUT
PROCESS
LAYOUT
FIXED POSITION
LAYOUT
VOLUME- VARIETY -FLOW
VOL-HIGH, VARIETY-LOW
EG: PROCESS INDUSTRY
LIKE PETROCHEMICAL
MANUUFACTURERS, AND
MSS MANUFACTURERES
LIKE AUTOMOBILE
MANUFACTURERS
- RAW MATERIALS MOVE
PROGRESSIVELY
THROUGH THE SYSTEM
FROM ONE END OF THE
PROCESS UNTIL IT
REACHES THE FINAL
ASSEMBLY, TESTING AND
PACKING
OTHER EXTREME IS
PROJECT SHOP
-HERE THE VOLUME IS
TYPICALLY ONE
EG: POWER PROJECTS;
NUCLEAR FACILITIES; A
MULTI-LEVEL FLYOVER
SYSTEM FOR A LARGE
METROPOLITAN CITY, ETC
VOL-VARIETY-FLOW
AS VARIETY INCREASES, THE VOLUME DROPS, LEADING
BATCH MANUFACTURING FIRMS.

FURTHER INCREASE IN VARIETY LEADS TO REDUCTION IN
VOLUME AS IN CASE OF JOB SHOPS AND CUSTOMIZED
PRODUCT AND SERVICE PROVIDERS

IN GENERAL, AS THE FLOW BECOMES MORE CUMBERSOME,
THE TYPE OF LAYOUT MAY SIGNIFICANTLY INFLUENCE THE
ABILITY OF THE OPERATIONS MANAGER TO EFFECTIVELY
PLAN AND CONTROL OPERATIONS IN THE SHOP FLOOR.
TYPES OF LAYOUTS
PROCESS LAYOUT
A PROCESS LAYOUT IS AN ARRANGEMENT OF RESOURCES ON THE
BASIS OF THE PROCESS CHARACTERISTICS OF THE RESOURCES
AVAILABLE .
THE MAJOR IMPLICATION OF THIS DESIGN IS THAT EACH
COMPONENT MANUFACTURED IN THE SHOP NEEDS TO VISIT THE
MACHINES IN ORDER OF THEIR PROCESSING.
EACH DEPARTMENT IN A PROCESS IS TYPICALLY ORGANISED INTO
FUNCTIONAL GROUPS. THERE WILL BE DRILLING, MILLING,
GRINDING, MILLING DEPTS ETC. SIMILARLY, IN THE FABRICATION
AREA A SIMILAR ARRANGEMENT WOULD BE A WELDING DEPT,
FITTING DEPT, SHEARING DEPT ETC.
ALL MANUFACTURING SUPPORT AREAS ARE ALSO ARRANGED ON A
FUNCTIONAL BASIS LIKE MAINTENANCE DEPT, QUALITY CONTROL
DEPT, PROCUREMENT, STORES AND PRODUCTION PLANNING
PROCESS LAYOUT
A
A
L L L
L
L
L
M
M
M
M
G
G
G
G
D
D
B
B
PRODUCT LAYOUT
IN A PRODUCT LAYOUT , THE RESOURCES ARE
PLACED TO FOLLOW EXACTLY THE VISITATION
SEQUENCE DICTATED BY A PRODUCT
-MATERIAL HANDLING IS EASIER
-PRODUCTION VOLUME IS HIGHER
VERY OFTEN, THE FINAL ASSEMBLY IN SEVERAL
MANUFACTURING PLANTS FOLLOWS A PRODUCT
LAYOUT. EVEN TESTING, FINAL INSPECTION AND
EVEN PACKING COULD BE PART OF THIS LAYOUTS.
IN CASE OF SERVICE SECTOR, CLASSIC EXAMPLE
IS BANKING SYSTEM.

PRODUCT LAYOUT
L D M G
A
L
D
L G
B
L
ADVANTAGES &
DISADVANTAGES
PROCESS LAYOUT
(+) ADVANTAGES
-SHARING OF SPECIALISED AND
COSTLY EQUIPMENTS
-MORE FLEXIBILITY
-LESS VULNERABLE TO
BREAKDOWNS

DISADVANTAGES

LARGE INVENTORY BUILTUP,
OPERATIONAL CONTROL
DIFFICULT
EXCESS MATERIAL HANDLING
PRODUCT LAYOUT
(+)
-STANDARDISED PRODUCT/
PROCESS ROUTING
OPERATIONAL CONTROL IS
SIMPLER
-HIGH OUTPUT RATE IS
POSSIBLE
(-)
LOW TOLERANCE FOR
BREAKDOWNS
-DUPLICATION OF
EQUIPMENTS, SO HIGH COST
-LESS FLEXIBILITY DUE TO
DEDICATION OF RESOURCES
DRAWBACKS OF PROCESS
LAYOUT
- ENORMOUS CRISSCROSSING OF THE JOBS, RESULTING IN
POOR VISIBILITY OF FLOW OF JOBS. THIS MAKES PROGRESS
CHASING A DIFFICULT TASK.
-HEAVY LOAD ON MATERIAL HANDLING, LEADING TO
BOTTLENECK SITUATIONS IN THE MATERIAL HANDLING
SYSTEM
-DIFFICULTY IN PRODUCTION PLANNING, SCHEDULING AND
CONTROL OF THE JOBS.
-VERY HIGH THROUGHPUT TIMES, WHICH IN TURN
INCREASES THE INVESTMENTS IN STOCKS, SOCK HOLDING
COSTS, DAMAGES AND MATERIAL OBSOLESCENCE.
-POOR DELEGATION OF WORK AND POOR ACCOUNTABILITY
-LOW MOTIVATION AND LOW JOB SATISFACTION FOR THE
WORK FORCE.
GROUP TECHNOLOGY LAYOUT
GT IS A PHILOSOPHY THAT SEEKS TO EXPLOIT THE
COMMONALITY IN MANUFACTURING AND USES THIS AS A
BASIS FOR GROUPING COMPONENTS AND RESOURCES.THE
IMPLEMENTATION OF GT IS OFTEN KNOWN AS CELLULAR
MANUFACTURING.
GT LAYOUT PROVIDES AN ALTERNATIVE METHOD FOR
RECONFIGURING RESOURCES IN ORGANISATIONS THAT
HAVE MID-VOLUME, MID- VARIETY PRODUCT PORTFOLIOS.
- IN CELLULAR MANUFACTURING , THE AVAILABLE
COMPONENTS ARE GROUPED INTO PART FAMILIES.
AN APPROPRIATE MEASURE FOR MANUFACTURING
SIMILARITY IS USED TO IDENTIFY PART FAMILIES.
CORRESPONDING TO EACH PART FAMILY, MACHINE GROUPS
ARE IDENTIFIED AND THE LYOUT IS FORMED ACCORDINGLY.
GROUP TECHNOLOGY LAYOUT
CELL 1
CELL 2
CELL 3
CELL 4
L
M
D
D L G
L
L
M
G
D L
L
D
M
M
G
D
D
L
L
BENEFITS OF GT
THE BENFITS OF GT ARE MANY. ONCE THE
PART FAMILIES AND THE MACHINE GROUPS
ARE IDENTIFIED, THE LAYOUT ENSURES
THAT EACH CELL HAS ONLY A CERTAIN
NUMBER OF COMPONENTS TO BE
PROCESSED. IN ESSENCE, IT IS AKIN TO
BREAKING A MONOLITH STRUCTURE INTO
SMALLER, MORE MANAGEABLE AND
INDEPENDENT UNITS OF PRODUCTION.
BECAUSE OF THS PRODUCTION PLANNING
AND CONNTROL BECOME MUCH SIMPLER.
APPLICATIONS OF GT
- INDUSTRIAL FANS AND BLOWERS DIV OF ABB LTD,
MANUFACTURING NEARLY 725 MODELS;
TITAN INDUSTRIES INCREASED THE NO. OF WATCH
MODELS: 850( IN 1993) TO 1200 IN 1996
RELIANCE INDUSTRIES PLANNING TO INTRODUCE
SEVERAL NEW GRADES OF HIGH DENSITY
POLYTHENE(HDPE) AND LOW DENSITY
POLYETHYLENE(LDPE) WITH A VIEW TO ENTERING
FIVE NEW MARKETS OF POLYETHELENE IN 1995-
96. SO, THEY WOULD BE HANDLING OVER 40
VARIATIONS OF POLYETHELENE AT THEIR
MANUFACTURING PLANT.
IT IS ESTIMATED THAT OVER 70 PERCENT OF
MANUFACTURING INDUSTRIES WILL HAVE MID-
VOLOUME, MID VARIETY SCENARIO.
FIXED POSITION LAYOUT
THERE ARE SITUATIONS WHEN THE PRODUCT
MANUFACTURED IS VERY BULKY, DIFFICULT TO MOVE AND
IS OFTEN MADE IN QUANTITIES OF ONE OR A FEW PIECES.

FIXED POSITION LAYOUTS ARE TYPICALLY EMPLOYED IN
LARGE PROJECT TYPE OF ORGANISATION.
EG. SHIP BUILDING, AIRCRAFT MANUFACTURING, VERY
LARGE MACHINE TOOLS AND EQUIPMENT ETC.
FIXED PROJECT LAYOUTS ARE TYPICALLY EMPLOYED IN
LARGE PROJECT TYPE OF ORGANISATIONS. EG INCLUDES
- NUCLEAR ENGINEERING DIVISION OF BHEL AT
TIRUCHIRAPALLI,
THE FINAL ASSEMBLY HANGER OF ADVANCED LIGHT
HELICOPTER MANUFACTURE AT HAL BANGLORE,
ISRO LAUNCH SITE AT SRIHARIKOTA.
PERFORMANCE MEASURES
FOR LAYOUT DESIGN
THE MOST FUNDAMENTAL MEASURE
FOR THE LAYOUT DESIGN IS THE
DISTANCE TRAVELED BY THE
CUSTOMER ORDER IN THE SYSTEM.
LAYOUT DESIGN SHOULD RESULT IN
BETTER EFFICENCY OF THE
OPERATING SYSTEM. THIS IS THE
SIMPLE GOAL OF ANY LAYOUT
PLANNING EXERCISE.
PERFORMANCE MEASURES FOR
THE LAYOUT PROBLEM
PERFORMANCE
MEASURE
-DISTANCE TRAVELLED BY JOBS
IN THE SHOP FLOOR
-SPACE UTILISATION INDEX
-MATERIAL HANDLING COSTS
-LEAD TIIME OF THE PROCESSES
-INVESTMENT IN WORK-IN
PROGRESS
-INTER-DEPARTMENTAL MOVES
-UTILISATION OF THE RESOURCES
EASE OF PRODUCTION CONTROL



-NO OF OWNERSHIP CHANGES
BASIS FOR
MEASUREMENT
-KG-MTS OF JOB MOVEMENT FOR
EACH PRODUCT
-MIN SPACE REQUIRED TO ACTUAL
SPACE UTILISED
-RUPEES PER MONTH
-HOURS PER AV. PRODUCT
-RUPEES PER MONTH
-NUMBER & QUANTUM OF INTER-
DEPARTMENTAL MOVES
-PERCENT TO TOTAL CAPACITY
-NO OF JOB CARDS & CONTROL
DOCUMENTS GENERATED; SIZE
OF THE PROGRESS CHASING
STAFF.
-NO OF TIMES THE JOB CHANGES
HANDS