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Lecture 16 Facility Planning

This document discusses facility planning, including plant location and plant layout. [1] Plant location refers to selecting the specific site for a production facility and involves strategic decisions around factors like resource availability, market demands, technology, and regulations. [2] Plant layout aims to design the optimal physical arrangement of equipment and space to minimize costs while meeting output requirements. It considers objectives, influencing factors, design principles, and types of layouts. The document provides details on evaluating and selecting plant locations and effective techniques for planning plant layouts.

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Sanskar Agrawal
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58 views13 pages

Lecture 16 Facility Planning

This document discusses facility planning, including plant location and plant layout. [1] Plant location refers to selecting the specific site for a production facility and involves strategic decisions around factors like resource availability, market demands, technology, and regulations. [2] Plant layout aims to design the optimal physical arrangement of equipment and space to minimize costs while meeting output requirements. It considers objectives, influencing factors, design principles, and types of layouts. The document provides details on evaluating and selecting plant locations and effective techniques for planning plant layouts.

Uploaded by

Sanskar Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Lesson 16

Operations Management
Facility Planning

Dr. Inderdeep Singh


Department of Mechanical and Industrial Engineering

1
Facility Planning
• Plant Location

• Plant Layout

Source:- Google image

2
Plant Location
• Plant location refers to the location of organization.

• It refers to selection of specific site for establishment of the


physical unit of production process.

• It is a strategic decision of an organization.


Need of Plant Location

 In case of new factory


 In case of existing factory
Need of Plant Location
For existing facility

 Change in availability of resources


 Shift of demand
 To expand new target market
 Development of new technology
 Socio Political and legal changes
Location decisions
Critical Success Factors
Country Decision
1. Political risks, government
rules, attitudes, incentives
2. Cultural and economic issues
3. Location of markets
4. Labor availability, attitudes,
productivity, costs
5. Availability of supplies,
communications, energy
6. Exchange rates and currency
risks
6
Location decisions
Critical Success Factors
Region/ Community
1. Corporate desires
Decision
2. Attractiveness of region
3. Labor availability, costs, attitudes towards
MN unions
WI 4. Costs and availability of utilities
MI
5. Environmental regulations
IL IN OH 6. Government incentives and fiscal policies
7. Proximity to raw materials and customers
8. Land/construction costs

7
Location decisions
Site Decision Critical Success Factors

1. Site size and cost


2. Air, rail, highway, and waterway
systems
3. Zoning restrictions
4. Nearness of services/ supplies
needed
5. Environmental impact issues

8
Plant Layout

Source - http://www.vbengg.com/img16/services/plant-layout-design4.jpg

9
Plant layout

• 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 cost are minimized”

10
Plant layout
• Objectives

• Factor influencing plant layout

• Principles of ideal layout

• Importance of plant layout

• Types of plant layout

11
Plant layout

• Material flow pattern

• Tools and techniques of plant layout

12
Thank You

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