 The mangement has a suitable layout for the

proposed plant at the place/site selected.

 It is one factor which determines the efficency
and performance of manufacturing unit.
 The physical means of production such
as building fixtures,
 machines,
 tools,
 service machinery,
 and work shop equipment encircled
together are designated as plant.
 Layout means arrangement of facilities in a
particular work-station/production unit.
 In case of plants or factories, ”layout refers
to the internal arrangement of machines,
 Equipment,
 Tools, work centers,
 And other physical facilities in an orderly
manner.
 According to H.N. Broom,

“PLANT LAYOUT is the overall arrangement

of machines tools, handling equipment, store
mid stockrooms; tools cribs, die-racks and
other various accessories required for
facilitating production in a factory.”
 To raise productive efficiency-
 To improve speed and quality of production-
 To reduce the cost of production-
 To avoid delays in the production processes-
 To use available area & floor economically-
 To maintain effective supervision-
 To make provision for future expansion-
 To make provision for rearrangement in the
plant-
 To provide efficient materials-
 To provide working conditions & safety-
 Optimum use of available area- its very
important to utilize every inch of space.
 Save handling cost- it amounts to 30% to 40%
of manufacturing cost.
 Remove bottlenecks-it is caused when the
raw materials get stuck in the machines.
 Quick execution of orders- it is possible to
handle repeat orders & new customers
through timely delivery.
 Better quality control- a sound layout
provides inspection of quality of the raw
materials.
 Improved production control- it provides for
production of right type of product, at the
right time and at the right cost.
 Improved employee morale: it provides
better working condition & job satisfaction.
 Limited investment: when plant layout is
properly done it is possible to minimize
investment in equipment.
 Best use of labour: every worker spend s
quality time in finishing his work.
 Improved supervision: to get full view of
plant layout.
 Type of industry: plant layout is dependent
on the type of industry.
For example- the layout of chemical factory ill
be different as compared to the layout of an
engineering unit. Thus, plant layout is
influenced by the type of industry.
 Nature of plant location:
 Nature and size of factory building: the
layout is to be adjusted according to the
physical factors available.
 Features of production process:

1) The volume of work to be handled,

2) The products to be manufactured including
their components,
3) The assembling process and the ancillary
services required for production activity.
 Space available in the plant for handling
materials: attention should be given to this
aspect while designing plant layout.
 Space required by machines: for its
convenience of the operator, for keeping raw
material & inspection.
 Facilities required by workers: like wash
rooms, dispensary canteen, etc
 Management polices: regarding the nature
and quality of the product.
 Size of output: it means the product is
manufactured.
 miscellaneous factors: climatic conditions &
requirement of light, temperature etc.
 Principle of minimum movement: men &
material should travel the shortest distance
in between the production operations.
 Flexibility: it should permit adjustments with
ease & also without disturbance.
 Low investment: this principle suggest that
the initial capital expenditure on layout
should be minimum.
 Compactness: it saves space & avoids
unnecessary movement of men & materials.
 Maintain sequence of operation: machinery,
stores , services, etc. should be arranged in a
logical order.
 Full utilization of available space: it also
ensures the full utilization of machines,
equipment , and facilities.
 Safety and satisfaction of the customers: it
should be convenient to worker & work with
ease.
 Integration: the plant facilities & services
should be fully integrated into a single
operating unit.
 Lower production cost due to:-
Reduced material handling cost,
Lower labour cost and increase in output per
man-hour,
Lower cost of scrap and waste,
Reduction in manufacturing time, &
Reduction in maintenance cost of tools &
machines.
 Higher turnover due to:
A faster flow of work in process,
More effective utilisation of machine
capacity & man power,
higher rate of production per square foot of
factory floor space,
Higher inventory turn over &
Smooth working of the factory.
 Superior customer services due to:
 Quicker & more reliable deliveres according
promised dates,
 A better quality of product, and
 A competitive price.
 Satisfaction to workers due to
 Less physical efforts/strain,
 Better working conditions
 Reduce floor accidents and limited number
of handlings,
 Availability of facilities and conveniences to
employee, and
 Easy and convenient physical movement
during work
 Effective supervision due to
 reduction in the amount of inspection,
 Reduction in the cost of supervision, and
 Limited burden of supervision.
 poor utilization of available space.
 Congestion of material, components &
assemblies,
 Excessive amount of work in process.
 Long transportation lines.
 Production bottlenecks at certain machines and
under utilisation of some other machines.
 Excess materials handling
 Long production cycles and delays in delivery
 Strain on workers and inadequate safety
 Ineffective supervision and control on employees
 Low productivity and profits
Product/line layout
Process/functional layout
Combined layout
Static/stationary layout
Cellular layout