DME-602

ADVANCE PRODUCTION
TECHNOLOGY

•Plant Location
•Plant Layout

•Material Handing

- Pawan K. Patil
Mechanical Engineering (SORT)
 Plant Location
Every entrepreneur is faced with the problem of deciding the
best site for location of his plant or factory
What is plant location?
Plant location refers to the choice of region and the
selection of a particular site for setting up a business
or factory. But the choice is made only after
considering cost and benefits of different alternative
sites. It is a strategic decision that cannot be changed
once taken. If a tall changed only at considerable loss,
the location should be selected as per its own
requirements and circumstances. Each individual
plant is a case in itself. Businessman should try to
make an attempt for optimum or ideal location.
 Plant Location
Considering various factors including availability of raw
material, water sources, transportation, electricity,
government’s norms, labours availability, medical facility
etc.
What is an ideal location?

An ideal location is one where the cost of the

product is kept to minimum, with a large market
share, the least risk and the maximum social gain. It
is the place of maximum net advantage or which
gives lowest unit cost of production and
distribution. For achieving this objective, small-scale
entrepreneur can make use of locational analysis for
this purpose
 Importance of Plant
location
 Plant location with thorough analysis leads the
organization towards success. The basic objective of
organization is to maximize the profit level. Hence,
it will be beneficial for both i.e. newly established
business & already established business. The profit
maximization can be done by increasing sales price,
increasing sales with reduced production cost, by
analyzing market trend etc. Production cost can also
be reduced, if firm is located at a place where all the
basic requirements (that fulfil input needs) will be
available easily, i.e. Raw material, manpower,
transport facility, water resource, etc.
Factors affecting site selection
Selection of appropriate location is necessary due to
following reasons:

•Plant location partially determines operating and

capital cost. It determines the nature of investment.

•Each plant location requires some basic facilities like

transportation, availability of water, electricity, fuel,
cheap labours etc.

•Each prospective location implies a new allocation of

capacity to respective market area.

•Government plays an important role in the choice of

the location keeping in view the national benefits.
 Factors affecting Site Selection

 Many factors are considered while selecting a site.

According to their importance these are classified as
primary factors & secondary factors.

 Primary factors

 Secondary factors
 Primary factors

•Raw material supply

•Nearness to market

•Labour Supply

•Power Supply

•Supply of Capital
 Secondary factors

•Natural factors

•Government Policy

•Availability

•Miscellaneous factors (Safety, water supply, threat of war)

 Plant Layout
 Plant layout refers to the arrangement of physical facilities
such as machinery, equipment, furniture etc. with in the
factory building 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
material to the shipment of the finished product

The efficiency of production depends on how well the various

machines; production facilities and employee’s amenities are l
ocated in a plant. Only the properly laid out plant can ensure t
he smooth and rapid movement of material, from the raw
material stage to the end product stage. Plant layout
encompasses new layout as well as improvement in
the existing layout.
 Importance of Plant layout

Plant layout is an important decision as it represents long-

term commitment. An ideal plant layout should provide the
optimum relationship among output, floor area and
manufacturing process. 

It facilitates the production process, minimizes material

handling, time and cost, and allows flexibility of operations,
easy production flow, makes economic use of the building, pr
omotes effective utilization of manpower, and provides for
employee’s convenience, safety, comfort at work, maximum
exposure to natural light and ventilation. It is also important
because it affects the flow of material and processes, labour
efficiency, supervision and control, use of space and
expansion possibilities etc.
General plant layout
 Types of Plant Layout
From the point of view of plant layout, we can classify
small business or unit into three categories:
 
 Manufacturing units.

 
 Traders.

 
 Service Establishments
 Manufacturing units.

In case of manufacturing unit, plant layout may be of

four types:

 Product or line layout (bases on Machine, equipment,

workstation)

 Process or functional layout (Based on process and operations)

 Fixed position or location layout

 Combined or group layout

 Traders

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-

 Self service or modified self service layout

 Full service layout

 Special layouts
 Characteristics of Plant Layout
An efficient plant layout is one that can be instrumental in
achieving the following objectives-

a) Proper and efficient utilization of available floor space.

b) To ensure that work proceeds from one point to another
point without any delay.
c) Provide enough production capacity.
d) Reduce material handling costs.
e) Reduce hazards to personnel .
f) Utilize labour efficiently.
g) Increase employee morale.
h) Reduce accidents
i) Improve productivity
 Material Handling
In a broad sense, materials handling includes all movement of
materials, in a manufacturing situation. It has been defined by
the Materials Handling Division. American Society of
Mechanical Engineers, as follows: “Materials handling is the
art and science involving the moving, packing, and storing of
substances in any form.

Movement of discrete items, such as gears, tires, castings, and

boxes. Similarly, we shall consider only the movement of
materials within the plant or storage areas. Movement of
materials between plants- particularly when common carriers
are used – is generally considered a problem in traffic and is
frequently handled by a separate traffic department.
 Material Handling
It includes storing raw material, equipment, tools, assemblies,
semi finished and finished products and their packaging.
 Objectives of Materials Handling
The simplest solution to the materials handling problem- “No
movement, no cost” is hardly practicable for a complete
manufacturing process. It is basically sound approach when
one is attempting to improve a complete production cycle and
when the number of handling can be reduced. It is also a good
solution in the making of heavy industrial equipment.

In the latter situation it is often more feasible to bring the tools

and workers to the product than to transport the product to
the machine or work area.

In addition to the objective of reducing the overall costs of

materials handling by reducing the number of handling
involved, the following may be considered as objectives of the
engineer in his or her approach to this problem.
 Lower the unit materials handling costs
 Reduce the manufacturing cycle time
 Contribute toward a better control of the flow of
goods
 Provide for improved working conditions and
greater safety in the movement of materials
 Provide for fewer rejects
 Achieve decreased storage requirement
 Gain Higher productivity at lower
manufacturing cost
 Principles of Material Handling

For many years, discussions of principles of materials handling

have been published by many experts in the field. The
following list has been adapted from two of these sources:

1. Eliminate wasteful methods by-

a. Reducing to a minimum the number of handlings of
materials.
b. Eliminating unnecessary mixing and subsequent sorting.
c. Using mechanical aids to eliminate the use of hand labour
in movement of materials.
d. Avoiding the unnecessary transfer of materials from floor
to workplace or from container.
2. In laying out the plant –
a. Plan a system for materials flow
b. Provide for continuous or appropriate intermittent
flow of materials .
c. Maximize the quantity and size of weight handled.
d. Make optimum use of building cubage.
e. Design adequate aisle and access area.
f. Select equipment that is flexible in its application.
3. In the selection and application of materials handling
equipment-

a. Recognize the need for different equipment for different

jobs.
b. Ensure that the existing equipment is being used effectively
Determine comparative costs of equipment before
purchasing .
c. Recognize the need for different equipment for different
jobs.
d. Give consideration to the maintenance of the equipment
 Types of Material handling
Devices
Tompkins and White divide materials handling equipment into
five classifications. They give the following list but note that
numerous variations can exist within each category:

1. Conveyors (Chain type, belt type, pneumatic type, screw type)

2. Monorails, hoists, and cranes (Depending upon size and weight of
material)
3. Industrial trucks (Various sizes and capacities, open and close
containers depending upon the material).
4. Containers and supports .
5. Auxiliary and other equipment (Lifts, forklift, tuckers, hooks, AGVs,
Robots)
 Roller conveyor

Automated Guided Vehicle (AGVs)

Belt Conveyor
Various material handling equipments