JJ619

INDUSTRIAL MANAGEMENT

PLANT LOCATION,
LAYOUT AND LINE
BALANCING
CHAPTER 2

JABATAN KEJURUTERAAN MEKANIKAL

POLITEKNIK SULTAN HAJI AHMAD SHAH
SUMMARY
 Thistopic covers plan location and
layout, facilities layout, processes
selection, line balancing and network
analysis.
COURSE LEARNING
OUTCOMES
 Students should be able to :
Apply the basic concept of industrial
management system in industry.
Produce the suitable plant layout
according to product flow process and
safety requirement.
Identify the suitable concept industrial
management system in related industry
by group.
PLANT LOCATION
 Holmes defines plant location problem as one
of determining
“That l o c a t i o n w h i c h , i n c o n s i d e r a t i o n of
a l l f a c t o r s a ff e c t i n g p r o d u c t s d e l i v e r e d to
c u s t o m e r s cost of p r o d u c t t o be
m a n u f a c t u r e d , w i l l a ff o r d t h e e n t e r p r i s e
he g r e a t e s t a d v a n t a g e s o b t a i n e d by
v i r t u e of location”.
PLANT LAYOUT
According to Moore; DEFINATION of plant
layout
“is a p l a n of a n o p t i m u m a r r a n g e m e n t of
f a c i l i t i es i n c l u d i n g personnel, o p e r a t i n g
e q u i p m e n t , s t o r a g e sp a ce, m a t e r i a l
handling equipment a n d all other
s u p p o r t i n g services a l o n g w i t h t h e d e s i g n
of b est s t r u c t u r e to c o n t a i n a l l these
facilities”.

The overall objective of plant layout is to

design a physical arrangement t h a t meets the
required output quality an d quantity most
economically.
INTRODUCTION
 Site selection is a n important activity as it decides the
fate of the business.
 A good location will reduce the cost of production
&distribution to a large extent. The reduction of cost of
distribution helps in elevating either the competitive
strength or the profit margin of business.
 Locating of business involves large & relatively
permanent investment.
 If the site selection is not done properly, all the money
spent on factory building, machinery & their installation
will go in waste & the owner h as to suffer great loss.
 Therefore the site for factory should be selected very
carefully. While selecting a site it is necessary to
consider technical, commercial, &financial aspects &
then select a site t h a t may provide maximum profit.
CONCEPT OF PLANT LAYOUT
 Need for location because of this situation :
• While starting a new factory
• During expansion of existing plant
• When existing plant is to be re-located a t some other
place
 Steps( Procedure) in choosing Location
National Decision Political, social, economic stability;
Currency exchange rates; . . . . .

Regional Decision Climate; Customer concentrations;

Degree of unionization; . . . . .

Transportation system availability;

Community Decision
Preference of management; . . . . .

Site size/cost; Environmental impact;

Site Decision Zoning restrictions; . . . . .
FACTORS OF PLANT LOCATION
 Selection of region – Factors
 Availability of raw materials
 Nearness to ma rke t
 Availability of power
 Transport facilities
 Suitability of climate
 Goverment policy
 Competition between states

 Selection of community/locality (factors)

 Availability of labour
 Civic amenities for workers
 Existence of complementary & competing industries
 Finance & research facilities
 Availability of water & fire-fighting facilities
 Local taxes & restrictions
 Momentum of early st a rt
 Personal factors
 Disposal of waste
FACTORS OF PLANT LOCATION
 Selection of a particular site (factors)
 Condition t h a t demand city (urban) location, sub-urban
location and rural location.
 Example :
FACTORS (CONT.)
RAW MATERIALS AVAILABILITY:
 The source of raw materials is one of the most important factors influencing the selection of a plant site. This
is particularly true for the sulfuric acid plant because large volumes of sulfur is consumed in the process
which will result in the reduction of the transportation and storage charges. Attention should be given to the
purchased price of the raw materials, distance from the source of supply, freight and transportation
expenses, availability and reliability of supply, purity of raw materials and storage requirements.
LOCATION:
 The location of markets or intermediate distribution centers affects the cost of product distribution and time
required for shipping. Proximity to the major markets is a n important consideration in the selection of the
plant site, because the buyer usually finds advantageous to purchase from near-by sources. In case of
sulfuric acid plant, the major consumers are fertilizer industries and hence the plant should be erected in
close proximity to those units.
AVAILABILITY OF SUITABLE LAND:
 The characteristics of the land a t the proposed plant site should be examined carefully. The topography of
the tract of land structure must be considered, since either or both may have a pronounced effect on the
construction costs. The cost of the land is important, as well as local building costs and living conditions.
Fu t u r e changes may make it desirable or necessary to expand the plant facilities. The land should be ideally
flat, well drained and have load-bearing characteristics. A full site evaluation should be made to determine
the need for piling or other special foundations
ENVIRONMENTAL IMPACT AND EFFLUENT DISPOSAL:
 Facilities must be provided for the effective disposal of the effluent without any public nuisance. In choosing
a plant site, the permissible tolerance levels for various effluents should be considered and attention should
be given to potential requirements for additional waste treatment facilities. As all industrial processes
produce waste products, full consideration must be given to the difficulties and coat of their disposal. The
disposal of toxic and harmful effluents will be covered by local regulations, and the appropriate authorities
must be consulted during the initial site survey to determine the standards t h a t must be met.
FACTORS (CONT.)
TRANSPORT:
 The transport of materials and products to and from plant will be a n overriding consideration in site
selection. If practicable, a site should be selected so t h a t it is close to a t least two major forms of
transport: road, rail, waterway or a seaport. Road transport is being increasingly used, and is suitable for
local distribution from a central warehouse. Rail transport will be cheaper for the long-distance
transport. If possible the plant site should have access to all three types of transportation. There is
usually need for convenient rail and air transportation facilities between the plant and the main company
head quarters, and the effective transportation facilities for the plant personnel are necessary.
AVAILABILITY OF LABORS:
 Labors will be needed for construction of the plant and its operation. Skilled construction workers will
usually be brought in from outside the site, but there should be a n adequate pool of unskilled labors
available locally; and labors suitable for training to operate the plant. Skilled tradesmen will be needed
for plant maintenance. Local trade union customs and restrictive practices will have to be considered
when assessing the availability and suitability of the labors for recruitment and training.
AVAILABILITY OF UTILITIES:
 The word “utilities” is generally used for the ancillary services needed in the operation of any production
process. These services will normally be supplied from a central facility and includes Water, Fuel and
Electricity which are briefly described as follows:
 Water: The water is required for large industrial as well as general purposes, starting with water for
cooling, washing, steam generation and as a raw material in the production of sulfuric acid. The plant
therefore must be located where a dependable water supply is available namely lakes, rivers, wells, seas.
If the water supply shows seasonal fluctuations, it’s desirable to construct a reservoir or to drill several
standby wells. The temperature, mineral content, slit and sand content, bacteriological content, and cost
for supply and purification treatm ent must also be considered when choosing a water supply.
Demineralized water, from which all the minerals have been removed is used where pure water is needed
for the process use, in boiler feed. Natural and forced draft cooling towers are generally used to provide
the cooling water required on site.
 Electricity: Power and steam requirements are high in most industrial plants and fuel is ordinarily
required to supply these utilities. Power, fuel and steam are required for running the various equipments
like generators, motors, turbines, plant lightings and general use and thus be considered as one major
factor is choice of plant site.
FACTORS (CONT.)
LOCAL COMMUNITY CONSIDERATIONS:
 The proposed plant mu s t fit in with and be acceptable to the local community. Full

 consideration mu s t be given to the safe location of the plant so t h a t it does not impose a

 significant additional risk to the community.

CLIMATE :
 Adverse climatic conditions a t site will increase costs. Extremes of low temperatures will

 require the provision of additional insulation and special heating for equipment and

 piping. Similarly, excessive humidity and hot temperatures pose serious problems and

 mu s t be considered for selecting a site for the plant. Stronger structures will be needed a t

 locations subject to high wind loads or earthquakes.

POLITICAL AND STRATEGIC CONSIDERATIONS :

 Capital grants, tax concessions, and other inducements are often given by governments to

 direct new investment to preferred locations; such as areas of high unemployment. The

 availability of such grants can be the overriding consideration in site selection.

TAXATION AND LEGAL RESTRICTIONS:

 State and local tax rates on property income, unemployment insurance, and similar items

 vary from one location to another. Similarly, local regulations on zoning, building codes,

 nuisance aspects and others facilities can have a major influence on the final choice of the

 plant site.
OBJECTIVES OF PLANT LAYOUT
 The main objective consists of organizing equipment and
working areas in the most efficient way, and a t the same
time satisfactory and safe for the personnel doing the
work.
Sense of Unity
 The feeling of being a unit pursuing the same
objective.
Minimum Movement of people, material and resources.
Safety
 In the movement of materials and personnel work
flow.
Flexibility
 In designing the plant layout taking into account the
changes over short and medium terms in the
production process and manufacturing volumes.
OBJECTIVES OF PLANT LAYOUT
 These main objectives are reached through the attainment
of the following facts:
Congestion reduction.
Elimination of unnecessary occupied areas.
Reduction of administrative and indirect work.
Improvement on control and supervision.
Better adjustment to changing conditions.
Better utilization of the workforce, equipment and services.
Reduction of material handling activities and stock in
process.
Reduction on parts and quality risks.
Reduction on health risks and increase on workers safety.
Moral and workers satisfaction increase.
Reduction on delays and manufacturing time, as well as
increase in production capacity.
 All these factors will not be reached simultanesly, so the
best solution will be a balance among them.
PRINCIPLES OF PLANT LAYOUT

 Overall integration of factors,

 Minimum movement,
 Uni-direction flow,
 Effective use of available space,
 Maximum visibility,
 Maximum accessibility.
PRINCIPLES OF PLANT LAYOUT (CONT.)
Overall i n t e g r a t i o n of factors:
 A good layout is one t h a t integrates men, materials, machines and
supporting activities a nd others in a way t h a t the best compromise is
obtained No layout can satisfy each a nd every principle of a good
layout. Some criterion may conflict with some other criterion a nd as a
result no layout can be ideal it ha s to integrate all factors into the best
possible compromise.

M i n i m u m move me nt:
 A good layout is one t h a t permits the minimum movement between
the operations. The plant a nd machinery in case of product layout
a nd departments in case of process layout should be arranged as per
sequence of operations of most of the products.
 Since straight line is the shortest distance between any two points,
men and materials as far as possible should be made to move along
the straight pa t h
 A door may be made in a wall or a hole may be drilled in a ceiling if
t h a t eliminates or reduces material handling in place of stairs or a
distant door.
PRINCIPLES OF PLANT LAYOUT (CONT.)
U ni-direction flow:
 A good layout is one t h a t makes the materials move only in the forward
direction, towards stage of completion, with any backtracking.
 Since straight line is the shortest distance between any two, points,
materials as far as possible should be made to move on the principle of
straight-line flow. And when straight line flow is not possible, other flows
like U-shaped flow, circular flow or zig zag flow may be adopted, but the
layout may ensure t h a t materials move in the forward direction.
 To ensure forward flow, equipment if necessary may be duplicated.

Effective u s e of available space:

 A good layout is one t h a t makes effective use of available space both
horizontal and vertical.
 Backtracking and duplicated movements consume more time, involve un-
necessary materials handling, add to cost and lead to inefficiency.
 Raw materials, work-in-progress and finished goods should be piled
vertically one above another r a t h e r t h a n being strewn on the floor.
 Pallets or equivalents should be made use of to pile up several layers one
above another.
 Area below the work tables or in the cupboards built into the wall are
welcome since they reduce requirement of space.
PRINCIPLES OF PLANT LAYOUT (CONT.)
Ma x imu m visibility:
 A good layout is one t h a t makes men, machines and materials ready

observable a t all times.

 All departments should be smoothly integrated, convenient to service and easy
to supervise.
 Every piece of positioning or screening or partitioning should be scrutinized
and carefully planned.
 Special cupboards, enclosures, offices, partitions etc. should be avoided except
when their utility is established beyond doubt.

Ma x imu m accessibility:
 A good layout is one t h a t makes all servicing and maintenance point readily

accessible.
 Machines should be kept sufficiently ap art and with reasonable clearance from
the wall so t h a t lubrication, adjustment and replacement of belts, removal of
parts a t the time of repairs etc can be done conveniently by the maintenance
staff.
 Area in front of electrical panels and fire extinguishers should be kept free
from obstructions.
PLANT LAYOUT PROCEDURE
P l a n t La y o u t P ro c e d u re - P h a s e 1 Information G a t h e r in g
 Determine what will be produced
 Determine how many will be produced
 Determine what components will be made or purchased
 Determine required operations
 Determine sequence of operations
 Set time standards for each operation

P l a n t La y o u t P ro c e d u re - P h a s e 2 P ro d u c t i o n a n d F l o w
Analysis
 Determine the plant rate, R
 Determine the number of machines
 Balance production lines
 Study the flow requirement
 Determine activity relationships
 Layout each workstation
PLANT LAYOUT PROCEDURE (C0NT.)
P l a n t La y o ut P ro c e d u re - P h a s e 3 S u p p o r t S e r v i c e s
 Identify needs for personal and plant services
 Identify office needs
 Develop total space requirements
 Select material handling equipment
 Allocated area
 Develop plot plan and building shape

P l a n t La y o u t P ro c e d u re - P h a s e 4 I m p l e m e n t a t i o n a n d
E v a l u a t io n
 Construct master plan
 Seek input and adjust
 Seek approvals
 Install
 S ta r t up
 Follow up
FACILITIES LAYOUT
 DEFINITION :
A facility layout is a n arrangement of
everything needed for production of
goods or delivery of services.
A facility is a n entity t h a t 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).
REASON FOR FACILITIES LAYOUT
 Reason :
Minimize delays in materials handling a nd customer movement.
Maintain flexibility.
Use labor a n d space effectively.
Promote high employee morale a nd customer satisfaction.
Provide for good housekeeping a nd maintenance.
Enchange sales as appropriate in manufacturing a nd service.

 What t y p e of facility w o u l d b e he l pful :

Because the facility is not functional - (poor layout / traffic pattern
/ not easy to use).
Because the facility is getting new equipment (like a kitchen
cooking facility).
Because the facility is going to need to provide for more guests.
Because due to a poor former design, the facility is failing as in
structural deficiency.
Because the owner ha s a lot of money.. a nd wants to re-design the
facility to make it more modern.
REASON (CONT.)
 S y m p t o m s t h a t a l l o w u s t o d e t e c t t h e n e e d for a re-layout:
Congestion and bad utilization ofspace.
Excessive stock in process a t the facility.
Long distances in the work flow process.
Simultaneous bottle necks and workstations with idle time.
Qualified workers carrying out too many simple operations.
Labor anxiety and discomfort. Accidents a t the facility.
Difficulty in controlling operations and personnel.
CATEGORIZE TYPES OF LAYOUT

 From the point of view of plant layout,

we can classify small business or unit
into three categories:
1. Manufacturing units
2. Traders
3. Service Establishments
1. MANUFACTURING UNITS
 Incase of manufacturing unit, plant
layout may be of four types:
(a) Product or line layout
(b) Process or functional layout
(c) Fixed position or location layout
(d) Combined or group layout
(A) PRODUCT OR LINE LAYOUT
 Under this, machines and equipments are arranged in one line depending
upon the sequence of operations required for the product.
 The materials move form 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,
e.g. in a paper mill, bamboos are fed into the machine a t one end and paper
comes out a t 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 a t
the point demanded by the sequence of operations
b) There should no points where one line crossed another line.
c) Materials may be fed where they are required for assembly but not
necessarily a t one point.
d) All the operations including assembly, testing packing must be
included in the line
PRODUCT OR LINE LAYOUT (CONT.)

 A line layout for two products is given below:

 Product A

Turning Milling Drilling Assembly Inspection Package

Operation operation operation despatch

 Product B

Planer Grinding Milling Lathe Inspection Package

Operation operation operation operation despatch
(B) PR O SES LAYOUT
 In this type of layout machines of a similar type are arranged
together a t 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. Hence, such layouts typically have
drilling department, milling department, welding
department, heating department and painting department
etc.
 The process or functional layout is followed from historical
period. It evolved from the handicraft method of production.
 The work h as to be allocated to each department in such a
way t h a t no machines are chosen to do as many different job
as possible i.e. the emphasis is on general purpose machine.
 The work, which h as to be done, is allocated to the machines
according to loading schedules with the object of ensuring
t h a t each machine is fully loaded.
PROCESS LAYOUT (CONT.)
 Process layout is shown in the following diagram:

Miling Lathe Assembly

Shipping
And
Welding Grinder Inspection Receiving Painting
(C) FIXED POSITION OR LOCATION LAYOUT

 In this type of layout, the major product

being produced is fixed a t one location.
 Equipment labour and components are
moved to t h a t location.
 All facilities are brought and arranged
around one work centre. This type of layout
is not relevant for small scale entrepreneur.
FIXED LAYOUT (CONT.)
 The following figure shows a fixed position layout
regarding ship building :

man /labor

machine Ship material / equipment

building

stationary
(D) COMBINED LAYOUT
 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 [i.e. miscellaneous shops].
 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 with no likelihood of continuous
production, combined layout is followed.
 Generally, a combination of the product and process layout or
other combination are found, in practice, 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.
(D) COMBINED LAYOUT (CONT.)
 The following figure shows a combined position
layout :

ProcessLayout ProductLayout

Producevariousoperation Manufacturingvarious
componentparts

Assembly
Stamping Welding Heattreatment A B C D E
2. TRADERS
 When two outlets carry almost same merchandise, customers
usually buy in the one t h a t is more appealing to them. Thus,
customers are attracted and kept by good layout i.e. good
lighting, attractive colours, good ventilation, air conditioning,
modern design and arrangement and even music.
 All of these things mean customer convenience, customer
appeal and greater business volume. The customer is always
impressed by service, efficiency and quality.
 Hence, the layout is essential for handling merchandise,
which is arranged as per the space available and the type and
magnitude of goods to be sold keeping in mind the
convenience of customers.
 There are three kinds of layouts in retail operations today.
(a) Self service or modified self service layout
(b) Full service layout
(c) Special layouts
2. TRADERS (CONT.)
 The self-service layouts, cuts down on sales clerk’s time and allow
customers to select merchandise for themselves. Customers should be led
through the store in a way t h a t will expose them to as much display area
as possible, e.g. Grocery Stores or department stores. In those stores,
necessities or convenience goods should be placed a t the rear of the store.
The use of colour and lighting is very important to direct attention to
interior displays and to make the most of the stores layout.
 All operations are not self-service. Certain specialty enterprises sell to
fewer numbers of customers or higher priced product, e.g. Apparel, office
machines, sporting goods, fashion items, hardware, good quality shoes,
jewellery, luggage and accessories, furniture and appliances are all
examples of products t h a t require time and personal attention to be sold.
These full service layouts provide area and equipment necessary in such
cases.
 Some layouts depend strictly on the type of special store to be set up, e.g.
TV repair shop, soft ice cream store, and drive-in soft drink stores are all
examples of business requiring special design. Thus, good retail layout
should be the one, which saves rent, time and labour.
3. SERVICES CENTERS AND ESTABLISHMENT

 Services establishments such as motels,

hotels, restaurants, mu st give due attention
to client convenience, quality of service,
efficiency in delivering services and pleasing
office ambience.
 In today’s environment, the clients look for
ease in approaching different departments
of a service organization and hence the
layout should be designed in a fashion,
which allows clients quick and convenient
access to the facilities offered by a service
establishment.
PLANT LAYOUT PROCESSES SELECTION
 P ro c e s s selection
Deciding on the way production of goods or services will
be organized.
 Major i m p l i ca t i o n s
Capacity planning
Layout of facilities
Equipment, Capital-equipment or labor
intensive
Design of work systems
New p ro d u ct a n d service, t e c h n o l o g i c a l
c h a n g e s , a n d c o m p e t i t i v e pressures.
PROCESS SELECTION AND SYSTEM
DESIGN

Facilities and
Forecasting Capacity Equipment
Planning

Product and L ayout

Service Design

Process
Selection
Work
Technological
Design
Change
QUESTIONS BEFORE SELECTING A
PROCESS

 Variety of products and services

How much
 Flexibility of the process; volume, mix,
technology and design
What t y p e a n d d e g re e
 Volume
Expected output
PROCESS TYPES
 J o b Shops:
Small lots, low volume, general equipment, skilled
workers, high-variety. Ex : tool and die shop,
veterinarian’s office.
 B a t c h Proc e s sing:
Moderate volume and variety. Variety among
batches but not inside. Ex : paint production ,
BA3352 sections.
 Repetitive/Assembly:
Semicontinuous, high volume of standardized
items, limited variety. Ex : auto plants, cafeteria.
 C o n t i n u o u s Processing:
Very high volume a n no variety. Ex : steel mill,
chemical plants.
 Projects:
Nonroutine jobs. Ex : preparing BA3352 midterm.
LINE BALANCING
 Li ne b a l a n c i n g is the process of assigning tasks
to workstations in such a way t h a t the
workstations have approximately equal time
requirements. This results in the minimized idle
time along the line and high utilization of labor
and equipment.
 Assembly line balancing is associated with a product
layout in which products are processed as they pass
through a line of work centres. An assembly line can be
considered as a “PRODUCTION SEQUENCE” where
parts are assembled together to form an end product. The
operations are carried out at different workstations
situated along the line.
LINE BALANCING CONCEPT
 The step in line balancing :
1) The minimization of the number of workstations;
2) The minimization of cycle time;
3) The maximization of workload smoothness;
4) The maximization of work relatednes.
 Reasons to have balance the production line :
(1) Keeping inventory cost slow results in higher net income;
(2) Keeping normal inventory levels lets the operator work
all day long giving him/her the opportunity to earn more
money by increasing his/her efficiency;
(3) Keeping the line balanced let’s the supervisors improve
other areas because they can use their time better;
(4) Balanced production keeps prices low which tu r n s into
repeat sales;
(5) Balanced production means better production.
LINE BALANCING CONCEPT (CONT.)
 There are 3 rules for balancing:
(1) Have a t least ½ hour of WIP for each operation;
(2) Solve problems before they become any larger;
(3) Meet production goals by keeping every operator working a t their
maximum capacity.
 Line balancing is the act of balancing the cycle time of the workers on a
production line to the takt time.
Takt time is the required pace of production to meet customer demand. The
word takt comes from the German word for the baton used by an orchestra
conductor.
 When everyone h as a cycle time t h a t matches the takt time, work flows
efficiently. If a line is not balanced, it either h as waiting waste where team
members are standing around a t the end of each cycle, or the line can’t keep
up with demand.
 The total cycle time to produce a product divided by the takt time gives the
number of people required. This assumes t h a t the work can be split evenly—
sometimes it can be h ard to do precise line balancing. Most lines never get
balanced out perfectly even.
 Consolidating all this extra time makes it easy to shift a person to another
location when a few improvements are completed. It also gives t h a t person a
bigger chunk of time to work on projects. This practice of line balancing is
known as the lea st o pera to r co ncept .
DESIGNING PRODUCT LAYOUTS
 The main objective of a product layout is to
arrange workers or machines in a line according
to the operations t h a t need to be performed.
 Thus it would seem t h a t the layout could be
determined by following the order of assembly.
 To maximize efficiency on the assembly line
balancing must be considered.
 Line balancing - attempt to equalize the amount
of work a t each work station.
 Line Balancing cuts down on idle time for the
workers.
LINE BALANCING IN PRODUCT DESIGN
LAYOUT
 S o m e d ef in it io n s :
 Workstation : A work station is a location on assembly line
where given amount of work is performed.
 Cycle t i m e : it is the amount of time for which a unit t h a t
is assembled is available to any operator on the line or it is
the time the product spends a t each work station.
 Task : The smallest grouping of work t h a t can be assigned
to a workstation.
 P re d e c e s s o r Task : A task t h a t must be performed before
performing another (successor) task.
 Task t i m e : Standard time to perform element task.
 S t a t i o n t i m e : Total standard work content of specific
workstation.
 B a l a n c e D e l a y (BD) : Percentage of total idle time on the
line to total time spent by the product from beginning to
end of line.
LINE BALANCING IN PRODUCT DESIGN
LAYOUT
 The p a r a m e t e r s i n l i n e b a l a n c i n g :

 Cycle time (CT) = Available time period = AT .

Output units required/period Output

 Minimum number of workstation = Total time

Cycle time

 Line efficiency (LE) = Total station time x 100

Cycle time x no. of workstations

 Balance delay (BD) = Total idle time for all workstations x100
Total available working time on all stations
= 1 – LE
EXAMPLE 1:
In one company, production time available per day is 480
minutes a n d 40 units are required per day. The d a t a is
shown below for nine tasks.
PRIORITY OF
TASK TIME
TASK
A 10 -
B 11 A
C 5 B
D 4 B
E 12 A
F 3 C ,D
G 7 F
H 11 E
I 3 G ,H
TOTAL TIME 66
QUESTION 1 :

 Determine :
 1. Identify precedence diagram.
 2. Calculate:
 i. Cycle time,
 ii. Minimum number of workstations,
 iii. Assign the work elements to
workstations.
SOLUTION 1:
 1. Precedence diagram
5

10 11 C 3 7

A B F G
4
D 3
I
12 11

E H
SOLUTION 1:
 2. Calculate :

i) Cycle time = 480 = 12 minutes/unit

40

ii) Minimum number of workstation

= 66
12
= 5.5 or 6 stations
SOLUTION 1 :
 iii) Assign the workstation:

S4
S1 S2 5 S6

10 11 C 3 7

A B F G
4
D 3
S3 S5 I
12 11

E H
EXAMPLE 2:
 The company I engaged in the assembly of a wagon on a
conveyor. 500 wagons are required per day. Production time
available per day is 420 minutes. The other information is given
below regarding assembly steps and precedence relationships.

Task Time (sec) Task that must precede

A 45 -
B 11 A
C 9 B
D 50 -
E 15 D
F 12 C
G 12 C
H 12 E
I 12 E
J 8 F ,G ,H,I
K 5 J
Total 191 -
QUESTION 2 :

 i) Draw the precedence diagram.

 ii) Calculate the cycle time.
 iii) Determine the minimum number
of work stations.
 iv) Group of work stations accordingly.
 v) Find the line efficiency.
SOLUTION 2 :
 i) Draw the precedence diagram.

11 9 12
B C F

A 45

G 12

50 15 12 8 9
D E H J K

12
I
SOLUTION 2 :
 ii) Cycle time.

 Cycle time (CT) = Available time period = AT .

Output units required/period O utput
= 420 x 60
500
= 50.4 sec

 iii) The minimum number of work stations, N.

 N = Total time
Cycle time
= 191
50.4
= 3.79 ≈ 4 work stations
SOLUTION 2 :
 iv) Group of work stations accordingly.

S3
S1
B C F

A
S4

G
S2

D E H J K

I
SOLUTION 2 :

 v) The line effiency.

 Line efficiency = Total station line x 100

(LE) Cycle time x no. of work stations
= 191 x 100
50.4 x 4
= 94.74%
NETWORK ANALYSIS
Introduction :
 Network analysis is the general name given to certain
specific techniques which can be used for the planning,
management and control of projects.

 One definition of a project:

“A project is a temporary endeavour undertaken to
create a "unique" product or service”

 Network analysis is a vital technique in Project

Mana gement . It enables us to take a s y s t e m a t i c
q u a n t i t a t i v e s t r u c t u r e d a p p r o a c h to the problem of
managing a project through to successful completion.
Moreover, as will become clear below, it h as a graphical
representation which means it can be understood and
used by those with a less technical background.
NETWORK ANALYSIS (CONT.)
 The N e t w o r k D i a g r a m :
 In a project, a n activity is a task t h a t must be
performed and a n event is a milestone marking the
completion of one or more activities. Before a n
activity can begin, all of its predecessor activities
mus t be completed. Project network models
represent activities and milestones by arcs and
nodes.
 Two different techniques for network analysis were
developed independently in the late 1950's - these
were:
PERT (for Program Evaluation and Review
Technique); and
CPM (for Critical P a t h Management).
OBJECTIVES OF CPM AND PERT
 A powerful coordinating tool for planning,
scheduling and controlling of projects.
 Minimization of total project cost and time

 Effective utilization of resources and

minimization of effective resources.
 Minimization of delays and interruption
during implementation of the project.
APPLICATIONS OF CPM AND PERT
 Research a n d development projects.
 Equipment maintenance an d overhauling.

 Construction projects (building, bridges, dams).

 Setting up new industries.

 Planning a n d launching of new products.

 Design of plants, machines and systems.

 Shifting the manufacturing location from one

location to another.
 Control of production in large job shops.

 Market penetration programs.

 Organization of big programs, conferences.

COMPARISON BETWEEN CPM AND PERT

No. CPM PER

1 Activityoriented Eventoriented
Usedwhentheactivity timesare
2 Usesaprobabilistictime.
deterministic.
Threetimeestimates; a)optimistic,
3 Onetimeestimate.
b)mostlikely, c)pessimistic.
Directlyintroducescostconcept
4 Indirectlycurrentsfor costs.
analysis.
5 Planningdevice. Controldevice.
CRITICAL PATH METHOD (CPM)
 DuPont developed a Critical P a t h Metho d (CPM)
designed to address the challenge of shutting down
chemical plants for maintenance an d then restarting
the plants once the maintenance had been completed.
 Complex project, like the above example, require a
series of activities, some of which mu st be performed
sequentially and others t h a t can be performed in
parallel with other activities. This collection of series
and parallel tasks can be modeled as a network.
 CPM models the activities and events of a project as a
network. Activities are shown as nodes on the
network and events t h a t signify the beginning or
ending of activities are shown as arcs or lines between
the nodes. The Figure 1.0 shows a n example of a CPM
network diagram:
FIGURE 1.0 : CPM NETWORK
CRITICAL PATH METHOD (CPM)
 Critical P a t h Met hod (CPM) is a procedure for
using network analysis to identify those tasks which
are on the critical path; (where any delay in the
completion of these tasks will lengthen the project
timescale, unless action is taken).
 For all tasks off the critical path, a degree of
tolerance is possible (late start, late completion, early
start).
 Network charts and CPM analysis used to be carried
out by hand.
 Software is now available which requires the user
only to enter the tasks, duration of each task and
dependencies upon other tasks; a network chart
and CPM is then automatically created.
STEPS IN CPM PROJECT PLANNING
 1. S p e c i f y t h e i n d i v i d u a l a c t i v i t i e s
All the activities in the project are listed. This list can be used
as the basis for adding sequence and duration information in
later steps.
 2. D e t e r m i n e t h e s e q u e n c e of t h e a c t i v i t i e s
Some activities are dependent on the completion of other
activities. A list of the immediate predecessors of each activity
is useful for constructing the CPM network diagram.
 3. D r a w t h e N e t w o r k D i a g r a m
Once the activities and their sequences have been defined, the
CPM diagram can be drawn. CPM originally was developed as
a n activity on node network.
 4. E s t i ma t e activity c o m p l e t i o n t i m e
The time required to complete each activity can be estimated
using past experience. CPM does not take into account
variation in the completion time.
STEPS IN CPM PROJECT PLANNING
 5. Identify t h e Critical P a t h
The critical pat h is the longest-duration path through the
network. The significance of the critical p at h is t h a t the
activities t h a t lie on it cannot be delayed without delaying the
project. Because of its impact on the entire project, critical
path analysis is a n important aspect of project planning.
The critical pat h can be identified by determining the
following four parameters for each activity:
 • ES - earliest s t a r t time: the earliest time a t which the activity
can s t a r t given t h a t its precedent activities must be completed
first.
 • E F - earliest finish time, equal to the earliest s t a r t time for the
activity plus the time required to complete the activity.
 • LF - latest finish time: the latest time a t which the activity can
be completed without delaying the project.
 • LS - latest s t a r t time, equal to the latest finish time minus the
time required to complete the activity.
STEPS IN CPM PROJECT PLANNING
The slack time for a n activity is the time between its
earliest and latest s t a r t time, or between its earliest
and latest finish time. Slack is the amount of time t h a t
a n activity can be delayed past its earliest s t a rt or
earliest finish without delaying the project.
The critical path is the path through the project
network in which none of the activities have slack, t h a t
is, the path for which ES=LS and EF=LF for all
activities in the path. A delay in the critical path delays
the project. Similarly, to accelerate the project it is
necessary to reduce the total time required for the
activities in the critical path.
 6. U p d a t e CPM d i a g r a m
As the project progresses, the actual task completion
times will be known and the network diagram can be
updated to include this information. A new critical path
may emerge, and structural changes may be made in
the network if project requirements change.
CPM BENEFITS AND LIMITATIONS
 CPM B e n e f i t s
Provides a graphical view of the project.
Predicts the time required to complete the project.
Shows which activities are critical to maintaining
the schedule and which are not.

 CPM Limitations
While CPM is easy to understand and use, it does
not consider the time variations t h a t can have a
great impact on the completion time of a complex
project. CPM was developed for complex but fairly
routine projects with minimum uncertainty in the
project completion times. For less routine projects
there is more uncertainty in the completion times,
and this uncertainty limits its usefulness.
WHY THE CPM?
 The formally identifies tasks which must be
completed on time for the whole project to be
completed on time.
 Identifies which tasks can be delayed for a while if
resource needs to be reallocated to catch up on
missed tasks.
 It helps you to identify the minimum length of time
needed to complete a project.
 The CPM determines both the early st ar t and the
late s t a r t date for each activity in the schedule.
PERT
 The P r o g r a m E v a l u a t i o n a n d R e v i e w Te c h n i q u e
(PERT) is a network model t h a t allows for randomness
in activity completion times. PERT was developed in the
late 1950's for the U.S. Navy's Polaris project having
thousands of contractors. It h as the potential to reduce
both the time and cost required to complete a project.
 Hence there was a strategic emphasis on completing the
Polaris project as quickly as possible, cost was not a n
issue. However no one had ever build a submarine
launched intercontinental ballistic missile before, so
dealing with uncertainty was a key issue. PERT h as the
ability to cope with uncertain activity completion times
(e.g. for a particular activity the most likely completion
time is 4 weeks but it could be any time between 3
weeks and 8 weeks).
PERT (CONT.)
 The N e t w o r k D i a g r a m
In a project, a n activity is a task t h a t must be performed and
a n event is a milestone marking the completion of one or more
activities. Before a n activity can begin, all of its predecessor
activities must be completed. Project network models
represent activities and milestones by arcs and nodes.
PERT is typically represented as a n activity on arc network,
in which the activities are represented on the lines and
milestones on the nodes. The Figure 2.0 shows a simple
example of a PERT diagram.
The milestones generally are numbered so t h a t the ending
node of a n activity has a higher number t h a n the beginning
node. Incrementing the numbers by 10 allows for new ones to
be inserted without modifying the numbering of the entire
diagram. The activities in the above diagram are labeled with
letters along with the expected time required to complete the
activity.
FIGURE 2.0 : PERT NETWORK
STEPS IN PERT PLANNING PROCESS
PERT planning involves the following steps:
 1. Identify a ctiv it ie s a n d mi l e s t o n e s
The activities are the tasks required to complete the project. The milestones
are the events marking the beginning and end of one or more activities.
 2. D e t e r mi n e a ctiv ity s e q u e n c e
This step may be combined with the activity identification step since the
activity sequence is known for some tasks. Other tasks may require more
analysis to determine the exact order in which they mu st be performed.
 3. Co nstruct t h e N e t w o r k Dia g ra m
Using the activity sequence information, a network diagram can be drawn
showing the sequence of the serial and parallel activities.
 4. E s t i ma t e a ctiv ity t i me s
Weeks are a commonly used unit of time for activity completion, but any
consistent unit of time can be used. A distinguishing feature of PERT is its
ability to deal with uncertainty in activity completion times. For each
activity, the model usually includes three time estimates:
 Optimistic time (OT) - generally the shortest time in which the activity

can be completed. (This is what a n inexperienced manager believes!)

 Most likely time (MT) - the completion time having the highest

probability. This is different from expected time. Seasoned managers

have a n amazing way of estimating very close to actual d ata from prior
estimation errors.
 Pessimistic time (PT) - the longest time t h a t a n activity might require.
 STEPS IN CPM PROJECT PLANNING
 5. D e t e r m i n e t h e Critical P a t h
The critical p a t h is determined by adding the times for the activities
in each sequence a nd determining the longest pa t h in the project.
The critical p a t h determines the total time required for the project.
If activities outside the critical p a t h speed up or slow down (within
limits), the total project time does not change. The amount of time
t h a t a non-critical pa t h activity can be delayed without delaying the
project is referred to as slack time.
If the critical pa t h is not immediately obvious, it may be helpful to
determine the following four quantities for each activity:
 ES - Earliest St a rt time

 E F - Earliest Finish time

 LS - Latest St a rt time

 LF - Latest Finish time

These times are calculated using the expected time for the relevant
activities. The ES a nd E F of each activity are determined by working
forward through the network a nd determining the earliest time a t
which a n activity can st a rt a nd finish considering its predecessor
activities.
STEPS IN CPM PROJECT PLANNING
The latest s t a r t and finish times are the latest times t h a t a n activity
can s t a r t and finish without delaying the project. LS and LF are
found by working backward through the network. The difference in
the latest and earliest finish of each activity is t h a t activity's slack.
The critical path then is the path through the network in which none
of the activities have slack.
The variance in the project completion time can be calculated by
summing the variances in the completion times of the activities in
the critical path. Given this variance, one can calculate the
probability t h a t the project will be completed by a certain date.
Since the critical path determines the completion date of the project,
the project can be accelerated by adding the resources required to
decrease the time for the activities in the critical path. Such a
shortening of the project sometimes is referred to as project crashing.
 6. U p d a t e a s project p ro g re s s e s
Make adjustments in the PERT chart as the project progresses. As
the project unfolds, the estimated times can be replaced with actual
times. In cases where there are delays, additional resources may be
needed to stay on schedule and the PERT chart may be modified to
reflect the new situation.
BENEFITS AND LIMITATIONS OF PERT
 Be ne fi ts of PERT
 PERT is useful because it provides the following information:
Expected project completion time.
Probability of completion before a specified date.
The critical pa t h activities t h a t directly impact the completion
time.
The activities t h a t have slack time a nd t h a t can lend resources to
critical pa t h activities.
Activities st a r t a nd end dates.

 Li mi tati ons of PERT

 The following are some of PERT's limitations:
The activity time estimates are somewhat subjective a nd depend
on judgment. In cases where there is little experience in
performing a n activity, the numbers may be only a guess. In other
cases, if the person or group performing the activity estimates the
time there may be bias in the estimate.
The underestimation of the project completion time due to
alternate paths becoming critical is perhaps the most serious.
TERMS ARE U S E D
 Network – A graphical representation of the project and it
consists of series of activities arranged in a logical sequence
and show the interrelationship between the activities.
 Activities – A physically identifiable p a rt of the project,
which consumes time and resources. Each activity has a
definite s t a rt and end . Activity is represented by a n arrow
( ).
 Event – An event represents the s t a r t or the completion of
a n activities. The beginning and end points of a n activity are
events.
Example : Machining a component is a n activity
St a rt machining is a n event
Machining completed is a n event

Tail event head event

TERMS ARE U S E D (CONT.)
 Predecessor activities – All those activities,
which mu st be completed before starting he
activity under consideration.
 Successor activities – all the activities which
have to follow the activity under consideration.
 P a t h – a n unbroken chain of activities between
two events.
 Dummy activity – a n activity which depicts the
dependency or relationship over the other but
does not consume time or resources. It is
indicated by a dotted line ( ).
 Critical activity – activity with zero float.
TERMS ARE U S E D (CONT.)
 Critical pa t h is the sequence of activities which add
up to the longest overall duration. It is the shortest
time possible to complete the project. Any delay of
a n activity on the critical pat h directly impacts the
planned project completion date (there is no float on
the critical path). A project can have several,
parallel, near critical paths. An additional parallel
pat h through the network with the total durations
shorter t h a n the critical pat h is called a sub-critical
or non-critical path.
 Resource leveling – iterative process ofassigning
crews to activities in order to calculate their
duration.
NETWORK / PRECEDENCE DIAGRAM
 Any schematic display of the logical relationships of
project activities.
 Diagram of project activities t h a t shows sequential
relationships by use of arrows and nodes.
 Example : A sample set of project network.
BUILDING A PRECEDENCE DIAGRAM
NETWORK ANALYSIS
 There are TWO (2) ways of displaying a
project network :
1. Activity – on – arrow (AOA)
Network diagram convention in which
a r ro ws designate activities.
2. Activity – on – node (AON)
Network diagram convention in which
n o d e s designate activities.
E XAMPLE 1 :
Table 1
Task Predecessor
A -
B -
C a
D b
E b
F c, d
G e

Cre at e i. AOA net work , a n d

ii. AON net work .
SOLUTION 1:

i. A completed sample AOA network

1 c 3
a f f
s
i
t d n
a
b g i
r
s
t e 4
2 h
SOLUTION 1 ( CONTINUED ):
 ii. A completed sample AON network

a c
f
s f
i
t
n
a d i
r
s
t
b h

e g
DRAW DIAGRAM USING NODES
 The node have 3 par t : NO., EST and LST

EST

NO.

LST

 NO. – Event label / event number

 EST – Earliest St ar t Time

 LST – Latest St ar t Time

EXAMPLE 2 : DRAW NETWORK / DIAGRAM

4 F 19
2 18 15 5 33
C
A D
4 6 3
36
0 B 8 G 20 H 9
1 4 6 36
0 8 8 12 20 10
E J 5
7
3
7 K 20 L 31
7 8
11 9 20 11 31
EXAMPLE 3 : CRITICAL PATH
 Find the critical pat h and critical time
Table 2
Task Predecessor D u r a t io n (days)
A - 5
B - 4
C A 3
D A 4
E A 6
F B, C 4
G D 5
H E 6
I F 6
J G, H 4
SOLUTION 3 : CRITICAL PATH
9 G 14
4 7
12 5 17
D
4
5 E 11 H 17
2 6 5 11 6 8
5 17 J
A C 4
5 3
0 8 21
1 6 10 21
0 11

B I
4 6
3
8 F 12
9
11 4 15

 Critical pa t h : A – E – H – J
 Critical time : 21 days
FLOATS / SLACKS
 Float (slack) - amount of time t h a t a task can be delayed without
causing a delay to:
subsequent tasks (free float)
project completion date (total float)
 The slack of a n event is the difference between the latest a nd earliest
event times.
Slack = LST – EST
The events with zero slack time are known as critical events.
Example :

7 4 17
5 17
7 18
9 17

Slack event 5 = 17 – 7 = 10
Slack event 7 = 18 – 4 = 14
Slack event 9 = 17 – 17 = 0
Critical event / slack = 0 , so event 9 is critical event.
FLOAT / SLACKS (CONT.)
 Total float is the spare time available on any given
activity if the tail event occurred a t its earliest time
and the head event a t its latest time.
Total float (TF) = Time latest a t head – Time earliest
a t tail – Activity duration

Example :

0 B 8
1 4
0 8 8

Total float activity B = 8 – 0 – 8 = 0 (Critical)

FLOAT / SLACKS (CONT.)
 Free float is the spare time available on a n activity if
both the tail and the head events occurred a t their
earliest time. If this spare time is used up during the
execution of this activity, it will have no effect on
subsequent activities. It can be calculated thus :
Free float = Time earliest head – Time earliest
tail – activity duration

Example :

4
B 12
3 4
4 2 15

Free float activity B = 12 – 4 – 2 = 6

EXAMPLE 4 : FLOAT / SLACKS
 The activities involved in a small project are given
below along with relevant information. Construct the
network , compute the critical path show the slack for
each activity and find the floats for each activity .

Activity Duration
1–2 20
1–3 25
2–3 10
2–4 12
3–4 6
4–5 10
SOLUTION 4 : FLOAT / SLACKS
 The network diagram.

30
3
30
D
A
25 6
10 C

0 B 20 E 36 F 46
1 2 4 5
0 20 20 12 36 10 46

 Critical p a t h : B – E – F
SOLUTION 4 : FLOAT / SLACKS (CONT.)
 The floats and slacks for each activity.
Activity Duration Earliest Latest Float Slack

S t ar t Finish S t ar t Finish Total Free

1–2 20 0 20 0 20 0 0 0
(Critical)

1–3 25 0 25 5 30 5 5

2–3 10 20 30 20 30 0 0 0
(Critical)

2–4 12 20 32 24 36 4 4

3–4 6 30 36 30 36 0 0 0
(Critical)

4 –5 10 36 46 36 46 0 0 0
(Critical)
SOLUTION 4 : FLOAT / SLACKS (CONT.)
 The slack for each activity.

Event EST LST Slack Remark

= (LST – EST)
1 0 0 0 Critical

2 20 20 0 Critical

3 30 30 0 Critical

4 36 36 0 Critical

5 46 46 0 Critical

 Critical p a t h : 1 – 2 – 3 – 4 – 5
EXERCISE :
 Draw the network and compute the critical path.
SOLUTION :

7 c 13 g 16
a A C G h
7 6 13 3 16
7 2
S
T 0 18
A
R
H 18
T 0
b h
3 d 6 e 9
3 B D E 2
10 3 13 3 16

f e
5 8 3
F
13

Critical path: A– C – G –H
Total Completion Time: 7 + 6 + 3 + 2 = 18
Total slack: 4 + 7 + 7 + 8 = 26
 THANK YOU

THE E N D