FACILITY PLANNING AND

LAYOUT
BY

DR NAWAR KHAN
PhD Engineering Management, MSc Production
Engineering,
MBA (HRM), BSc Mechanical Engineering
Engineering Management Department
College of Electrical & Mechanical Engineering (E&ME)
Peshawar Road Rawalpindi, Pakistan
e-mail: nwr_khan@yahoo.com

National University of Sciences & Technology

College of Electrical and Mechanical Engineering
Department of Engineering Management (EM)
Subject: MEM- 806 FACILITY PLANNING AND LAYOUT
Credit Hours:
3 hours per week
Contact Hours: 3 hours per week
Instructor:
Professor Dr Nawar Khan
Recommended Books
1. Production and Operation Management, 8Th Edition by Norman Gaither
and Greg Fazier, South-Western College Publishing

2. Production and Operation Management, 6Th Edition by Alan

Muhlemann, John Oakland and Keith Lockyer 1995 reprint Pitman
Publishing London

3. Hand Book of Industrial Engineering, Edited by Gavriel Salvendy, John

Willey & Sons New York

4. Modern Production and Operation Management by Elwood S. Buffn, 7 th

Edition John Willey and Sons

5. Operation Management by Roger G. Schroeder 3rd edition McGraw Hill

MODE OF TEACHING:
Lecture/ Discussion
GRADING:
a. Quiz:
2- 3 / Cr Hr
(10%)
b. Sessional Exams: (02)
(30%)
c. Home Assignments / Term Proj:
(10%)

S/No

Main Topics

Hours

Location and site selection criteria

03

Equipment and utilities layout

03

Latest tools and software for facility layouts, Types of

06

Layout
4
5

Work cell layout and job shop layout

06

Types of Production, Group / Cellular Technology

03

Material Handling Systems

06

Type of flows, Material Requirement Planning (MRP-II)

06

Inventory Models, Just In Time (JIT) technique and its

06

Pre-requisites
Single-Facility Location Problems, Multi facility Location
9

Problems

10

Discrete Location and Layout Problems, Continuous

Facility Design and Layout, Computerized Layout
Planning
Case Projects, Case studies and problem solution

11

Total

03
03

03
48

BUSINESS STRATEGY
Understand the business dynamics before selecting and
start of a business based on the following factors;
1. Own business interest and knowledge / expertise
2. Business types manufacturing or service
3. Types of industry primary, secondary or tertiary
4. Check growth rate of business as well as product
5. Ownership, joint venture, franchise.
6. Target market national or international
7. Target population
8. Single or multiple locations
9. Single product or product mix
10.Strategy; Make to order or make to stock

LOCATION AND SITE SELECTION CRITERIA

Understand the supply - distribution system

because the way the inputs are obtained
and outputs are distributed has an effect on;
1. The total cost of the product or service
2. The number of customers that can be
reached
3. The location of the organization and its
units
4. The design of the plant or operational
facilities

LOCATION STRATEGY

The following factors have an influence

on the choice of a facility location;
1. Proximity to the market
2. Integration with other parts of the
organization
3. Available of labour and skills
4. Available of amenities (housing,
shops, community services and
communication)
5. Available of transport
6. Available of inputs

LOCATION STRATEGY

7. Available of services (gas, electricity,

water, drainage, disposal of waste
and communication)
8. Suitability of land and climate
9. Regional regulations
10.Room for expansion
11.Safety requirement
12.Site cost
13.Political, culture and economic
situation
14.Special grants, regional taxes, and
import / export barriers

LOCATION EVALUATION METHODS RANKING TECHNIQUE

Factor

Weightag
e
Scale: 010

Location
A
Relative
Scale: 0-5

Location
B
Relative
Scale: 05

Location
C
Relative
Scale: 05

Location
D
Relative
Scale: 05

Location
E
Relative
Scale: 05

Proximity

3/18

3/18

2/12

5/30

1/6

Integration

Labour

1/9

5/45

4/36

2/18

3/27

Amenities

1/6

2/12

4/24

5/30

3/18

Transport

5/20

4/16

3/12

2/8

1/4

Inputs

4/16

1/4

2/8

3/12

5/20

Services

1/5

2/10

2/10

5/25

4/20

Land and
climate

4/8

2/4

5/10

3/6

1/2

Regional
regulations

5/40

2/16

4/32

3/24

1/8

Expansion

3/6

4/8

2/4

5/10

1/2

Safety

Cost

5/5

1/1

2/2

3/3

4/4

Politics
/culture

Special grants

2/4

1/2

5/10

4/8

3/6

FURTHER EVALUATION METHODS FOR

LOCATION SELECTION

Linear Programming this can be

used to further minimization of total
cost; that is, from source to facility
and facility to market called feeder
and fed. Typical example is
transportation method.
Stepping stone method is also used
for the purpose

SINGLE AND MULTI FACILITY LOCATION

(NOT SINGLE AND MULTIPLE STOREY)

The following factors are considered by

operation manager related to distribution
centres; (and not manufacturing facility)
1. Number
2. Location
3. Size
4. Allocation by customer
5. Allocation by manufacturing or service
centres
6. Quantity involved

SINGLE AND MULTI FACILITY LOCATION

(NOT SINGLE AND MULTIPLE STOREY)

One of the most powerful application of

computerized location and distribution
planning system is the simulation of
potential changes in environment, policies,
controllables and others. This will give
combined effect of;
The market and demand factor
Plant capacity
product, service and their mix
Prices

 Material cost
Fuel cost
Labour cost
Transport cost
Distribution centres
weather

FACTORS AFFECTING THE DESIGN OF PLANT OR PREMISE / FACILITY

SUMMARY

1. Accommodation required , both immediate

and potential
2. Latest possible completion date
3. Life of the plant or facility
4. Proposed site
5. Maximum cost

FACTORS AFFECTING THE DESIGN OF PLANT OR PREMISE / FACILITY

DETAILED DESIGN

The following factors have an influence on the choice

of a facility location;
1. Size
2. Number of floors
3. Access
4. Services
5. Headroom required
6. Load to be carried
7. lighting
8. Heating and ventilation
9. Disposal of waste
10. Special process requirements