PLANT LAYOUT

MEANING:
The efficiency of production depends on how well the various machines; production facilities
and employee’s amenities are located in a plant. Only the properly laid out plant can ensure the
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.

DEFINITION:

A plant layout can be defined as follows:

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.

According to Riggs, “the overall objective of plant layout is to design a physical arrangement
that most economically meets the required output – quantity and quality.”

According to J. L. Zundi, “Plant layout ideally involves allocation of space and

arrangement of equipment in such a manner that overall operating costs are
minimized.

OBJECTIVES OF GOOD 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) Utilise labour efficiently
g) Increase employee morale
h) Reduce accidents
i) Provide for volume and product flexibility
j) Provide ease of supervision and control
k) Provide for employee safety and health
l) Allow ease of maintenance
m) Allow high machine or equipment utilization
n) Improve productivity

TYPES OF LAYOUT

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:

 machines and equipments are arranged in one line depending upon the sequence of
operations required for the product.

 Also called as line layout

 The materials move form one workstation to another sequentially without any
backtracking or deviation.

 machines are grouped in one sequence

 the output of one machine becoming input of the next

 The raw material moves very fast from one workstation to other stations with a
minimum work in progress storage and material handling.

Advantages: Product layout provides the following benefits:

a) Low cost of material handling, due to straight and short route and absence of
backtracking
b) Smooth and uninterrupted operations
c) Continuous flow of work
d) Lesser investment in inventory and work in progress
e) Optimum use of floor space
f) Shorter processing time or quicker output
g) Less congestion of work in the process
h) Simple and effective inspection of work and simplified production control
i) Lower cost of manufacturing per unit

Disadvantages: Product layout suffers from following drawbacks:

a. High initial capital investment in special purpose machine

b. Heavy overhead charges
c. Breakdown of one machine will hamper the whole production process
d. Lesser flexibility as specially laid out for particular product.

Suitability: Product layout is useful under following conditions:

1) Mass production of standardized products

2) Simple and repetitive manufacturing process
3) Operation time for different process is more or less equal
4) Reasonably stable demand for the product
5) Continuous supply of materials

(b) Process layout:

 machines of a similar type are arranged together at one place.

 The processor functional layout is followed from historical period.

 It evolved from the handicraft method of production

 The work has to be allocated to each department in such a way that no machines are
hosen to do as many different job as possible

 The work, which has to be done, is allocated to the machines according to

Loading schedules with the object of ensuring that each machine is fully loaded

 suitable for job order production involving non-repetitive processes and customer
specifications and non-standardized products

 The grouping of machines according to the process has to be done keeping in

mind the following principles

a. The distance between departments should be as short as possible for

avoiding long distance movement of materials
 b. The departments should be in sequence of operations

c. The arrangement should be convenient for inspection and

supervision

Advantages: Process layout provides the following benefits

a) Lower initial capital investment in machines and equipments. There is high

degree of machine utilization, as a machine is not blocked for a single product
b) The overhead costs are relatively low
c) Change in output design and volume can be more easily adapted to the output
of variety of products
d) Breakdown of one machine does not result in complete work stoppage
e) Supervision can be more effective and specialized
f) There is a greater flexibility of scope for expansion.

Disadvantages: Product layout suffers from following drawbacks

a. Material handling costs are high due to backtracking

b. More skilled labour is required resulting in higher cost.
c. Time gap or lag in production is higher
d. Work in progress inventory is high needing greater storage space
e. More frequent inspection is needed which results in costly supervision

Suitability: Process layout is adopted when

1. Products are not standardized

2. Quantity produced is small
3. There are frequent changes in design and style of product
4. Job shop type of work is done
5. Machines are very expensive

(c) Fixed Position or Location Layout

 the major product being produced is fixed at one location. Equipment labour and
components are moved to that location
 All facilities are brought and arranged around one work center
 This type of layout is not relevant for small scale entrepreneur.

Advantages: Fixed position layout provides the following benefits

a) It saves time and cost involved on the movement of work from one
workstation to another.
b) The layout is flexible as change in job design and operation sequence can be
easily incorporated.
c) It is more economical when several orders in different stages of progress are
being executed simultaneously.
d) Adjustments can be made to meet shortage of materials or absence of workers
by changing the sequence of operations.

Disadvantages: Fixed position layout has the following drawbacks

a. Production period being very long, capital investment is very heavy

b. Very large space is required for storage of material and equipment near the
product.
c. As several operations are often carried out simultaneously, there is possibility
of confusion and conflicts among different workgroups.

Suitability: The fixed position layout is followed in following conditions

1. Manufacture of bulky and heavy products such as locomotives, ships, boilers,

generators, wagon building, aircraft manufacturing, etc.
2. Construction of building, flyovers, dams.
3. Hospital, the medicines, doctors and nurses are taken to the patient (product).

(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].

 manufacturing concerns where several products are produced in repeated numbers with
no likelihood of continuous production, combined layout is followed.

PRINICIPLES OF GOOD PLANT LAYOUT:

1. Maximum flexibility - The plant layout should not be rigid and permanent. If the need arises,
the plant layout should be able to change itself without being expensive.
2. Maximum coordination - The layout of the plant should such that all of its resources and
workforce can be observed and evaluated at all points in time. This helps in better supervision of
work and helps in increasing both effectiveness and safety.
3. Maximum visibility- The layout should visible to all the workers in the organization(For
Example: Visibility means how will it spread to everyone in organization. For Eg: "CEO actions
are visible to all", means everyone in organization will know about CEO actions.)
4. Minimum Movement - The less the movement of men, machines and materials, the less will be
the cost of production. Thus, minimum movement of theses resources will provide cost
efficiency.
5. Minimum Discomfort- The layout should reduce the uncomfortable for the workers in the
organization
6. Minimum Handling - The ineffective handling of materials leads to a rise in cost. Materials
should be handled in stacks and transferred in one go. Handling of a material twice in the same
direction must be avoided.
7. Safety Aspects - The environment of the plant should be safe for the workers as well as the
machines. There should be fire extinguishers and fire exits placed strategically. There should be
minimum contact of the labour to toxic chemicals and environment.
8. Efficient Process Flow-A good layout is one that makes the materials to move in forward
direction towards the completion stage i.e. there should not be any backtracking.
9. Identification-Every plant layout should have identification to identify

FACTORS INFLUENCING LAYOUT

1. Plant Location:

• plant layout and location are interrelated with one another

• The nature and size of the building determines the floor space available for layout. While
designing the special requirements, e.g. air conditioning, dust control, humidity control
etc. must be kept in mind.

2. Nature of Product:

• product layout is suitable for uniform products whereas process layout is more
appropriate for custom-made products.
• Depending upon the sequence of operation and the nature of the product plant layout is
decided.

3. Type of Industry:

• Product layout is suitable for continous production

• Process layout is suitable for intermittent production
• Synthetic industry, analytical industry, conditioning industry and extraction industry

4. Plant Environment:

• Heat, light, noise, ventilation and other aspects should be duly considered, e.g. paint
shops and plating section should be located in another hall so that dangerous fumes can
be removed through proper ventilation etc
• Adequate safety arrangement should also be made
 5. Spacial Requirement:

• The space of a layout is used for the labourers to work for machines to perform
operations for storage of raw material and finished the space is allocated in a current
layout

6. Repairs and Maintainence:

• machines should be so arranged that adequate space is available between them for
movement of equipment and people required for repairing the machines.

7. Balance:

• The plant layout has to ensure balance between the number of processes and number of
machines the capacity of each machine is considered to avoid overloading and
maintainence.

8. Management Policies:

• The management has to considered the following points by formulating policy with
regard to plant layout.

 Size of the product

 Delivery schedule
 Employee facility
 No. of equipment and facility
 Productivity

PROBLEM ON LAYOUT PLANNING :-

 Q.1:- Design the following layout for minimum material handling cost-

Load matrix

To → A B C D
Form

A _ 10 20 20

B 10 _ 10 20

C 20 30 _ 10

D 10 10 20 _

The centre to centre distance between A and B, between B and C and between A
and C is 20 meters as shown in the initial layout below.

Combination 1:-
 Lll

AD = 28.28 meter

Load Movement X Distance

A to B and B to A = 10+10 = 20 X 20 =400

A to C and C to A = 20+20= 40 X 40 = 1600

A to D and D to A = 20+10=30 X 28.28=848

B to C and C to B = 10+30 = 40 X 20 =800

B to D and D to B =20+10 = 30 X 20 = 600

C to D and D to C =10+20 = 30X 28.28 =848

Material handling cost = 01 /load/meter , ToTal = Rs. 5096

Combination 2:-
Load Movement X Distance

A to B and B to A = 10+10 = 20 X 20 =400

A to C and C to A = 20+20= 40 X 20 = 800

A to D and D to A = 20+10=30 X 20 = 600

B to C and C to B = 10+30 = 40 X 28.28 = 1131

B to D and D to B =20+10 = 30 X 40 = 1200

C to D and D to C =10+20 = 30X 28.28 =848

ToTal = Rs 4979

Material handling cost is low in second layout , so second layout is best layout in
given layouts.
Combination 3:-

A to B and B to A = 10+10 = 20 X 40 =800

A to C and C to A = 20+20= 40 X 20 = 800

A to D and D to A = 20+10=30 X 28.28 =848

B to C and C to B = 10+30 = 40 X 20= 800

B to D and D to B =20+10 = 30 X 28.28 = 848

C to D and D to C =10+20 = 30X 20 = 600

Total = Rs 4696

Combination 4:-
A to B and B to A = 10+10 = 20 X 40 =800

A to C and C to A = 20+20= 40 X 28.28 = 1131

A to D and D to A = 20+10=30 X 20 = 600

B to C and C to B = 10+30 = 40 X 28.28 =1131

B to D and D to B =20+10 = 30 X 20 =600

C to D and D to C =10+20 = 30X 20 = 600

Total = Rs 4862

Combination 5:-
A to B and B to A = 10+10 = 20 X 20 = 400

A to C and C to A = 20+20= 40 X 28.28 = 1131

A to D and D to A = 20+10=30 X 40 =1200

B to C and C to B = 10+30 = 40 X 20 = 800

B to D and D to B =20+10 = 30 X 20 =600

C to D and D to C =10+20 = 30X 28.28 = 848

Total = Rs 4979

Combination 6:-
A to B and B to A = 10+10 = 20 X 40 = 800

A to C and C to A = 20+20= 40 X 20 = 800

A to D and D to A = 20+10=30 X 28.28 = 848

B to C and C to B = 10+30 = 40 X 20 = 800

B to D and D to B =20+10 = 30 X 28.28 = 848

C to D and D to C =10+20 = 30X 20 = 600

Total = Rs 4696

Combination 7:-
A to B and B to A = 10+10 = 20 X 40 = 800

A to C and C to A = 20+20= 40 X 20 = 800

A to D and D to A = 20+10=30 X 28.28 = 848

B to C and C to B = 10+30 = 40 X 20 = 800

B to D and D to B =20+10 = 30 X 28.28 = 848

C to D and D to C =10+20 = 30X 20 = 600

Total =Rs 4696

Combination 8:-
A to B and B to A = 10+10 = 20 X 28.28 = 565.6

A to C and C to A = 20+20= 40 X 20 = 800

A to D and D to A = 20+10=30 X 28.28 = 848

B to C and C to B = 10+30 = 40 X 20 = 800

B to D and D to B =20+10 = 30 X 40 = 1200

C to D and D to C =10+20 = 30X 20 = 600

Total =Rs 4813.6

Combination 9:-
A to C and C to A = 20+20= 40 X 28.28 = 1131

A to D and D to A = 20+10=30 X 40 = 1200

B to C and C to B = 10+30 = 40 X 20 = 800

B to D and D to B =20+10 = 30 X 20 = 600

C to D and D to C =10+20 = 30X 28.28 = 848

Total = Rs 4979

Combination 10:-
A to B and B to A = 10+10 = 20 X 20 = 400

A to C and C to A = 20+20= 40 X 28.28 = 1131

A to D and D to A = 20+10=30 X 28.28 = 848

B to C and C to B = 10+30 = 40 X 20 = 800

B to D and D to B =20+10 = 30 X 20 = 600

C to D and D to C =10+20 = 30X 40 = 1200

Total = Rs 4979

Combination 11:-
A to B and B to A = 10+10 = 20 X 28.28 = 565.6

A to C and C to A = 20+20= 40 X 20 = 800

A to D and D to A = 20+10=30 X 28.28 = 848

B to C and C to B = 10+30 = 40 X 20 = 800

B to D and D to B =20+10 = 30 X 40 = 1200

C to D and D to C =10+20 = 30X 20 = 600

Total = Rs 4813.6

Combination 12:-
A to B and B to A = 10+10 = 20 X 28.28 = 565.6

A to C and C to A = 20+20= 40 X 40 = 1600

A to D and D to A = 20+10=30 X 20 = 600

B to C and C to B = 10+30 = 40 X 28.28 = 1131

B to D and D to B =20+10 = 30 X 20 = 600

C to D and D to C =10+20 = 30X 20 = 600

Total = Rs 5096.6

Material handling cost is low in 3,6,and 7 combination layout , so 3,6 and 7 layout
is best layout in given layouts. So I suggest choose these layout use for better
layout planning.