Production Management Unit 3

Prepared by :
Abhishek Jha,
Assistant Professor,
Hierank Business School
 UNIT 3
-SYLLABU
S

• Classification of Plant Layout.

• Advantages of Layout & limitations of different layouts.
• Layout design procedure.
• Over view of the Plant layout
 Plant Layout- Introduction

• The term Plant layout is mainly used to represent the physical arrangement of a
plant and different parts of a plant. The arrangement of machines, equipments
and other industrial facilities like receiving and shipping departments, tool
rooms, maintenance rooms and employee amenities which helps in attaining
rapid and interrupted flow of production activities at minimum cost is usually
referred to as plant layout.
• The layout decisions mainly deals with the location on & arrangement of the
production, support, customer service and other industrial facilities.
 Definition of Plant Layout
According to ‘Knowels & Thomson’ Plant layout deals with
• Planning and arranging manufacturing machinery, equipment and services for
the first time in completely new plants.
• The improvements in layouts already in use in order to introduce new
methods and improvements in manufacturing procedure.
 SCOPE OF PLANT LAYOUT

• Plant layout has broad scope of operations as it not only deals with the
primary decisions of machines and other facilities, but also concerned with
all the improvements that have to be made to the existing layout based on
the subsequent developments in the production methods.
• In simple terms, a plant layout is a floor plan which is meant for
determining and arranging the machinery and equipment of a plant at the
most suitable place such that both the materials flow and handling can
be obtained at low cost.
 PRINCIPLES OF PLANT LAYOUT

1. The principle of Minimum Travel: Operations manager must design layout

in such a way that the distance between operations is minimum which intern
helps in avoiding the labor & time wastages there by reducing the cost of
material handling.

2. :
The Principle of Sequence The machines & operations must be
arranged sequentially. This principle is effectively attained in product/
line layout.
3. The Principle of Usage: The available space needs to be optimally utilized.
This principle has wide acceptance in towns and cities where a piece of
land is very much expensive
4. The Principle of compactness: All the significant factors need to be fully
integrated and related, producing a well integrated and final layout.
5. The Principle of Safety & Satisfaction : The layout must have provisions for
safety of workers. It must be planned, based on the comfort and convenience of
the workers for making them feel satisfied.
6. Principle of Flexibility: The layout must allow improvements with less difficulty
and at minimum cos.
7. The Principle of Minimum Investment: The ideal layout must provide savings in
fixed capital investment not by ignoring the installation of required facilities but
by efficiently and optimally using the available facilities (economies of scale).
 OBJECTIVES OF A GOOD LAYOUT

The main objective of a plant layout is to optimally arrange all the factors of
production in such a way that it facilitates
- Low production cost and
- Increased returns to scale.
For attaining this objective , the plant engineer should consider following
secondary objectives while developing a plant layout.

1. By minimizing and controlling the material handling & Transportation costs

2. To eliminate the hurdles and points of overloading by making use of
appropriate line balancing techniques.
3. To provide adequate space and to establish proper locations for both production
centers and service centers.
4. To minimize the waiting time of semi finished goods.
5. To provide safe and adequate working conditions there by minimizing accidents.
6. To ensure that the space available is utilized optimally.
7. To make provisions for adequate flexibility in the designed layouts so that the
minute changes in product design or changes in material specification can be
accommodated easily.
8. To make the plant maintenance simple & easy.
9. To design and locate the workstations adequately to facilitate uninterrupted flow
of material and movement of men.
10.To encourage the effective utilization of Cellular manufacturing layout/ group
technology layout
11. To maintain high turnover of work in progress.
12.To effectively design the layout for improving productivity and quality of
product.
 Factors Influencing the Plant layout

The various factors influencing the plant layout decisions are :

1. Materials : some arrangement must be done for purpose of storing and
moving the raw materials into plant until they get converted into finished
products. The nature, type & form of raw material (ie liquid /solid,
seasonal , market conditions,/ Material specification.
2. Product: The nature of product(Size, demand) influences the type of layout
required. Production of ship-building, the product is fixed where as the
production resources such as men & machinery needs to be brought
towards the product. The demand of product also affects the layout
(Storage, handling)
3. Machinery: The size and type of machinery which dictated by the product
type, quantity of production , management policies.
4. Type of Industry: Plant layout decisions also influenced by the type of industry.
-Synthetic Industries: In these type several elements undergo production
process to form finished product.
Ex: Chemical , paper industry
- Analytical Industries: In these type, conversion of raw material into different
elements.
ex: sugar mill produces sugar bagasse, molasses, jaggery apart from sugar
crystals.
- Extractive Industries: Such industries extract one element from the group of
elements . ex: extraction of a metal from ore
6: Location: The location of the plant also affects plant layout in different.
a: type of building is decided by the terrain and size of the site.
b: location : influences the plant layout decisions in following ways.
- Size & Topography: decides the type of building to be constructed.
- Mode of transportation:
-Fuel requirements of the firm:
-Future expansion of the firm: if village site is selected , the expansion of
the concern my be influenced by the addition of one or more wings to the present
construction. When the urban is selected, expansion is influenced by addition of
several stories to the present construction. Based on no. of story , the material
handling requirements can be determined which influences the plant layout.
7. Managerial Policies: Layout is influenced by managerial policies which are as
follows.
a: The production volume & scope for expansion.
b: The level of automation required.
c: Production or purchase of equipment.
d: Desire for rapid delivery of goods to customers, policy of purchasing.
e: Personnel policies.
 TYPES/CLASSIFICATION OF PLANT LAYOUTS

• A plant layout mainly deals with the arrangement and grouping of machines which
are used for producing goods. Mostly grouping is employed on different product
lines. The selection of a particular layout relies on many factors.
1. Process layout/ Functional layout/ Job-shop layout.
2. Product Layout/ Line processing layout/ flow line layout
3. Fixed position Layout / Static Layout.
4. Cellular manufacturing Layout/ Group Technology Layout
5. Combination Layout/ Hybrid Layout.
 PROCESS/FUNCTIONAL/JOB SHOP LAYOUT
Process Layout : is a type of layout which is characterized by the presence of
similar machines or similar operations at specified location. It is known by
different names. It is also called as functional layout or Job shop layout or bath
production layout.
In Process layout: The machines are grouped on the basis of their operational
characteristics. Ie machines that are performing the same operation are installed
at a specific location.
All drilling m/cs are installed in drilling dpt. All lathe machines are installed in
Turning dpt. All welding m/cs are installed in welding dept.
 2. PRODUCT /LINE PROCESS / LINE/FLOW LINE
LAYOUT

• Product Layout: refers to the sequential or orderly arrangement of

machines in one line based on sequencing rules.
It is also called as Straight line Layout
or
Layout for serialized manufacture
In this layout , there exists several machines such that the partly processed
products (WIP) of machine becomes an input for the other machine.
3. FIXED POSITION /STATIONARY / STATIC LAYOUT

Fixed Position Layout: In this type of layout, material remain at a fixed place
and the complete job is done at a fixed station with materials.
-men and machines are moved to the place of materials for the necessary
operations.

• This type of layout is suitable for

• hydraulic turbines, ship building, Locomotive Industry.
 4. CELLULAR MANUFACTURING LAYOUT/
GROUP TECHNOLOGY LAYOUT

• Similar shape operations are made as a group or cellular and respective are
installed as a group
 5. COMBINATION/ HYBRID LAYOUT

• This layout contains a mix of process and Product layout .

• This layout is considered for special production line .

 ADVANTAGES OF PROCESS LAYOUT
1. Process layout provides greater flexibility in Production
2. A special machinery is used for performing specific job, efficient
supervision can be made/achieved.
3. A low investment on machines and equipment as general purpose
machines are used.
4. It provides greater scope for expansion as the production capabilities can be
increased easily.
5. It helps in optimum utilization of production recourses such as men and
machine equipments.
6. The breakdown of the equipment can be handled in process layout by
allotting the work to other machines or other work station.
7. Process layout motivates the individual worker by offering increased
incentives based on his performance.
DISADVANTAGES OF PROCESS LAYOUT

1. It is very much difficult to transfer the materials in process layout as

mechanical devices are not able to efficiently handle the materials.
2. More space is required for its functioning.
3. It is very much difficult to control the various activities.
4. It is associates with high cycle time as the WIP needs to move to different
work stations for their processing.
5. If more number of WIP units get accumulated near single m/c , it results in
congestion problems.
ADVANTAGES OF PRODUCT LAYOUT
1. Mechanical devices are used for handling materials, which helps in bringing
down the cost of material handling.
2. Helps in avoiding the obstructions in production.
3. Highly economical as it requires less time for processing.
4. It motivates the group of workers by providing higher incentives to increase
their performance level.
5. Offers better production control.
6. It requires small floor area for producing a single unit of product.
7. It reduces WIP and minimizes the investment.
8. Both mistakes and the defective items can be easily detected.
DISADVANTAGES OF PRODUCT LAYOUT

1. Lack of flexibility in production operations

2. It is not possible to supervise the operations.
3. Has less scope for expansion.
4. It is very expensive.
5. A Single breakdown of equipment along a production line can interrupt
the whole system.
LAYOUT PLANNING

• The engineering or planning department is responsible for designing and

installing a layout.
• In the manufacturing and service organizations, the layout planning deals
with the arrangement of resources so that the performance of the operating
system could be improved.
• A set of tools and techniques can be provided by the layout planning which
helps the operations manager to locate resources and also for assessment of
alternatives for locating the resources.
 LAYOUT PLANNING TOOLS & TECHNIQUES
The different techniques that are available and useful for layout planning are
1. Templates
2. Operations Sequence Analysis.
3. Line balancing.
1.Template: It is a two dimensional technique which is the most commonly used.
Templates are the design patterns which consists of a thin plate, made up of
wood or metal and which serve as a gate for performing mechanical
activities.
- It constitutes the scaled representation of the physical object of the
layout.
-Templates are fixed for preparing plans, for drawing several possible
layouts. The best possible option can be explored by eliminating the
unnecessary handling and backtracking of materials.
- It is usually employed for re-designing the existing department/building
- For verifying the layout design configuration decided by other layout
technique.
2. Operations Sequence Analysis: It is an early approach to process type layout.
It develops a good plan for arranging the departments graphically so that
the layout problem get an optimal solution. Through the operations
sequence analysis, the relative locations of operating department with
respect to one another can be predicted.
3. Line Balancing: it is an important activity of an assembly line operation,
which is mainly used for the equitable distribution of work among the
employees so that total number of employees can be greatly reduced. Line
balancing is not an easy task because there are different alternative
methods that can be far more easily applied than line balancing for the
decision of work. Some of the methods used by operation researchers to
study line balancing problems include linear programming, dynamic
programming and other optimal methods.
Steps followed in designing a layout
1. Statement showing the objectives, scope and factors that need to be
considered
2. Gather the primary data on sales forecasts, production volumes, production
schedules, part lists, operations and their sequences.
3. Development of flow process charts, flow diagram, string diagram, templates
and so on.
4. 4. establishment and the design of the production process.
5. Material flow pattern is planned and complete material handling plan is
developed.
6. Computation of the requirements of work centres and equipments.
7. Planning is done for individual work centres.
8. Selection of proper material handling equipments.
9. Identifying the storage requirements
10. Planning for the auxiliary and service facilities.
11. Identification of routing, service department, employee facilities and
requirement of space for each work station
12. Outlining the specification of building so that the requirement s of the layout
can be fixed.
13. Development of floor plan for representing the location of doors, windows,
stair case, lifts other infrastructural facilities.
14. Preparation of tentative or drafts layout plans.
15. Preparation of a comprehensive layout drawing which can be even accepted by
top management.
16. Preparation and design of work schedules for layout installations.
 CLASSIFICATION OF LAYOUT DESIGN PROCEDURES/
EVALUATING METHODS.
The design procedure s for layout are broadly classified into two type. They are,
1. manual methods
2. computerized methods
1. The manual methods are conventional type and are sub-divided as follows.
1a) travel chart method
1b)systematic layout planning
1c) local-distance analysis method

2.Computerized methods are constructive type and improvement type algorithms

and they are classified as follows.
2a) Automated layout design program (ALDEP)
2b)Computerized Relation ship Layout planning (CORELAP)
2c)Computerized Relative Allocation of Facilities Technique. (CRAFT)
2d)Computerized Plant Layout and Evaluation Technique. (PLANET).
2e)Computerized Facilities Design (COFAD)
 MANUAL LAYOUT DESIGN PROCEDURE

1a) Travel Chart Method

• Travel chart method is used for determining the overall flow of materials.
The travel chart is used to identify the most active departments when
materials move from one department to the other.
• In this method, the optimal solution can be reached by considering the trial
and error method wherein the active departments are located centrally so as
to minimize the non-adjacent flows.
• The travel chart is drawn by using circles for representing the work stations
and lines for the transportation of loads across the work centres and
departments.
 Procedure:
1. Identify the departments which maintain the adjustment links with the
other departments.
2. In facility outline, the most active departments must be located at the
central position.
3. By trial and error method, other departments must be located in such a
way that the non-adjacent flows could be minimized to a great extent.
4. By eliminating all the non-adjacent moves, the optimal solution is said to
have obtained.
 Manual layout design procedure
1b) Systematic layout planning method
• Some production systems like service systems, make use of systematic
layout planning wherein the amount of material that flows between the
departments may not be critical for the development of an appropriate
facility layout.
• In this method, a chart is prepared in which ratings are given for
representing the relative importance of locating one department close to
another department and is termed as “Relationship chart or Richard
Mutrher’s half matrix”. The important ratings are expressed with code
letters a,e,I,o,u,x which are called as “nearness codes”. Along with
nearness code, a reason code is also used which is indicated by a
number that depends on a variety of reasons for locating any two
departments, adjacent to each other.
• When the problem is formulated in systematic layout planning (SLP)
method, based on the sequential steps in general design, the process
starts as shown in below flow chart.
 HEURISTICS FOR PLANT LAYOUT
• When there is no method which guarantees an optimal solution with
reduced computational effort, in such situation we aim at a solution
which is not necessarily optimal but which is near optimal. The method
to get such a solution is known as heuristic method. Here an attempt is
made to strike a compromise between the computational effort and the
quality of the solution .
 HEURISTICS TO SOLVE THE LAYOUT PROBLEMS
• Computerized Relative Allocation of Facilities Technique (CRAFT)
• Automated design layout design program (ALDEP)
• Computerized Relationship Layout Planning
• ( CORELAP)
• Plant Layout Evaluation Technique (PLANET)
• Plant Layout Evaluation Technique (PLANET)
 CLASSIFICATION OF COMPUTER PROGRAMS OF PLANT
LAYOUT:

a) Construction of Algorithms :Computer programs

help in constructing the algorithms. A
construction algorithm includes the proper
selection and placement of activities (dpts), thus
helps in obtaining successive design
layout.

b) Improvement of Algorithms: This perception of

computer program provides an idea about
improvement in the quality of layout problem. In
order to improve the quality design layout, the
activities (departments) are interchanged from the
initial existing layout.
 PROGRAMS ARE MOST COMMONLY USED IN DESIGNING
A PLANT LAYOUT.
1. Computerized Relative Allocation of Facilities
Technique (CRAFT)
2. Automated design layout design program (ALDEP)
3. Computerized Relationship Layout Planning
( CORELAP)
4. Computerized Facilities and Design (COFAD)
5. Plant Layout Evaluation Technique (PLANET)
Model 2, 3 are construction algorithm which generate
layout by successive addition of facilities to locations.
Model 1 is an improvement algorithm which takes ,
an input and improves to optimal solution in a number
of iterations.
 COMPUTERIZED RELATIVE ALLOCATION OF FACILITIES
TECHNIQUE (CRAFT) :
• CRAFT is the first improvement algorithm which is most widely used in plant
layout design. This algorithm minimizes the material handling cost between the
departments. CRAFT not only helps in designing layout by considering material
handling cost, but also provide advancement in designing layout by considering
the interpretation not material flow. Initially CRAFT performs the evaluation
of given layout, hence considers the effects on design layout by interchanging
the departments. A pair wise exchange criteria gives an optimum results, to
minimize the transportation cost between the departments. The interchanging
of the departments continues to extreme limit, where no further improvements
can be made. In this locations are exchanged w.r.t similar are or with common
border. It allows some departments to be fixed in position so that there is no
chance of exchanging the locations.
 INPUT REQUIREMENTS OF CRAFT

• Total number of Departments

• Number of interchangeable departments
• Number of fixed departments with their location.
• Location of those departments.
• Area of each department.
• Initial Layout
• Flow data (matrix which shows no of unit loads moving between all
departments
• Cost per unit distance ( cost matrix )
 STEPS INVOLVED IN CRAFT:
Step-1: note the input requirements.
Step-2: compute centroids of all the departments in the present layout.
Step-3: Form the distance matrix by using centroids.
Step-4:. Given data on flow, distance and cost, compute the total handling cost
of the present layout.
Step-5: Find all the possible pair wise interchanges of departments based on
concept of common border or equal area.
Step-6: for each possibility, interchange the corresponding centroids and
compute approximate costs.
Step-7: Find the pair of departments corresponding to minimum handling cost
from among all the possible pair of interchanges.
Step-8: Is the cost in the previous is less than the total cost of the present
layout?.
If yes, go to step-8. If not go to step-11.
Step-8: Inter change the selected pair of departments. Call this as the NEW-LAYOUT.
Comput centrods, distance matrix and total cost.

Step-9: is the cost of new layout is less than the cost of the present layout?
If yes go to step-10. If not go to step-11.

Step-10: The new layout is here after considered as the present layout. The data on
centroids, layout matrix and the total cost is retained. Go to step-5.

Step-11: Print the present layout as the FINAL LAYOUT.

Step-12: stop the process.

The above algorithm is schematically represented with help of flow chart.

 ADVANTAGES OF CRAFT :
• Possibility of changing the input shapes
• CRAFT allows fixing of special locations.
• Computation speed of RAFT is fast and economical in operations.
• It can perform Mathematical operations easily.
• It is possible o check earlier interactions to run the program.
• It can be used for office layouts.
 DISADVANTAGES OF CRAFT

• Due to the need of the initial layout, the program is strictly applied only to modify the
already existing layout or to plan the new layout where borders (outline) are known.
• Distance between the departments is represented as a straight line.
• It requires manual adjustments.
• It does not provide the assurance of having lowest possible cost layout.
• It is difficult to improve the program produced by heuristic and sub-optimal
procedure (CRAFT)
• While feeding the input data in a program, it requires an attentive construction.
• It requires better adaptation for resettlements.
• The solution obtained from CRAFT program mainly depends on the path
• It considers the unpleasant relationships.
• CRAFT is restricted to 40 departments.
2 AUTOMATED LAYOUT DESIGN PROGRAM
(ALDEP)
• ALDEP belongs to the construction type program, which builds the
layout with out using the existing layout. It also considered as an
improvement program due to the evaluation process of accepting or
rejecting the given layout. It builds the layout by placing the most
related departments, size required and based on the closeness rating (ie,
A or E ) of A, E, I, O, U, X. it adds continuously the other departments
till the placement of all activities has been completed. This process is
continued till all the departments are placed in he layout and no
department should be available for placing with high closeness rating.
At this stage , score is computed for layout in terms of numerical values.
This procedure is repeated for several times and evaluates the best
layout with maximum layout score.
 INPUT REQUIREMENTS OF ALDEP:

• The number of departments in the layout.

• Area of each department.
• Length and width of layout
• The values of closeness for the pairs of department based on Relationship chart.
• Minimum Department Preference (MDP) value
• Sweep width.
• The least possible score for an acceptable layout.
• Total number of layouts to be generated.
• Building outline and scale of layout printout.
• The location and size of each prohibited area ( if present)
 STEP BY STEP PROCEDURE OF ALDEP ALGORITM
STEP BY STEP PROCEEDURE OF ALDEP
STEP-1: Give the input in following manner.
• The number of departments in the layout.
• Area of each department.
• Length and width of layout
• The values of closeness for the pairs of department based on Relationship chart.
• Minimum Department Preference (MDP) value
• Sweep width.
• Number of iterations to be carried out (N)
• Current iteration number (I)
• Location and sie of fixed department (if present)
• Score of the current layout.
• The least possible score for an acceptable layout.
• Total number of layouts to be generated.
• Building outline and scale of layout printout.
• The location and size of each prohibited area if present
STEP-2 Randomly selects the first department
STEP-3 Out of those departments which have “A” relationship with the first
one (or “E”, “I”, etc. – min level of importance is determined by the user) it
selects randomly the second department
STEP-4: Check for the availability of non selected department in category –
B If it is non empty, then choose a non selected department in category –B
itself corresponding to maximum REL value and place that dept in the
layout. If it is empty, then select a department randomly from category –A,
and place it in the layout.
STEP-5: Check for e placement of all departments in the layout. If an department
is found to be unplaced, follow the STEP-3, otherwise determine the score for
the layout.
STEP-6: Check whether the computed score of the layout is higher than
the current best layout. If yes, call the new layout as the current best
layout and save corresponding score. If no, cancel the new layout.
STEP-7: Check for the current iteration number ie I=N. I yes , print the current
best layout as final layout and its corresponding score as a final score.
If no, increase the iteration number as (I=I+1) and follow step
 ADVANTAGES OF ALDEP:

• It can affix the particular locations which are available under certain
limits.
• The solution or result obtained from ALDEP is available with in t
definite area.
• The possibility of developing several replacements in order to obtain the
optimum solution of layout.
• The possibility to have majority of inter-relationships.
• The capacity of degenerating multiple level of layouts
 DISADVANTAGES OF ALDEP:

• It does not calculate the movement cost.

• Honor can not be given to unpleasant relationships.
• The method of determining score is suspicious or undefined.
• The process of evaluating production is complicated.
• It does not consider the mandatory space configuration.
• Restricted to only upto 63 departments.