Facility Layout (Plant layout)

Introduction

• The term plant layout is used in broad sense to include factory layout and machine layout. A plant layout refers to the arrangement of machinery, equipments and other industrial facilities – such as receiving and shipping departments, tool rooms, maintenance rooms, employee amenities etc. for the purpose of achieving the quickest and smoothest production of the least cost.

Meaning

• Plant layout may be defined as physical arrangement of industrial facilities. This arrangement includes the space needed for material movements, storage, indirect labour and all other supporting activities or services as well as operating equipment and personnel.

Plant layout basically :-

• Placing the right equipment.• Coupled with the right method.• In the right place.• To permit the processing of a product unit in

the most effective manner, through the shortest possible distance, and in the shortest possible time.

Needs for plant layout

• When a new plant is set up to manufacture newly designed products.

• When a new product line is introduced in the factory.• When additional space is required to meet increased demand for

products.• When frequent accident occur in the factory.• When the existing facilities are to be rearrangement due to

change in methods or production.• When the existing factory is shifted to a new area.• When the cost reduction program is launched.• When improvements are to be made by incorporating scientific

and technological innovations.

Factors affecting the plant layout decision

• Type of production: - the plant layout for engineering unit will be quite different from that of a flour factory.

• Production system: - the plant layout is a continuous production system will be totally different that under the intermitted production system.

• scale of production: - the plant layout and material handling equipment in the large scale organization will be different from that in the small-scale manufacturing activity.

• Type of machine: - the use of simple-purpose and multipurpose machines substantially affect the plant layout. Similarly noisy and vibrating machines require special attention in the plant layout decision.

• Type of building facility: - the plant layout in a single story building will be different from that in a multi-story building.

• availability of total floor area: - the allocation of space for machines, work benches, etc is made on the basis of the available floor area. Use of overhead space is made in case of shortage of space.

• possibility of future expansion:- the plant layout is made in the light of the future requirements and installation of additional facilities.

• arrangement of material handling equipments: - the plant layout and the material handling services are closely related and the latter has a decisive effect on the arrangement of production process and plant services.

Process layout of a Fast Food Restaurant

• The layout in which all the equipments performing similar tasks are grouped together is called the process layout.

• It is also called the functional layout, as the material and machines required are grouped depending on their functions. For example: the milling machines, machines can be grouped together and the grinding machines can be grouped together.

Advantages

• A high degree of variety of products can be manufactured.

• Flexibility and adaptability to change is high.• Machine breakdown do not cause of

stoppage.• It is easier to instill job satisfaction to workers.• Coordination and supervision is simpler.

Disadvantages

• Higher flow time of the product due to zigzag flow through the system.

• Larger number of machine set-ups.• Low machine utilization.• More material handling.

Advantages of plant layout

• Better work conditions for workmen.• Minimization in material handling.• Minimization in damage and spoilage

materials.• Minimization in congestion of materials,

machinery and workmen.• Flexibility in changing production conditions.

Plant Layout Design

• Plant Layout is the organization of the physical facilities of a company to promote the efficient use of equipment, material, people and energy. The goals of a Plant layout design are to minimize unit costs, optimize quality, promote effective use of people, equipment, space and energy, provide for employee convenience, safety and comfort, control project costs, and achieve production deadlines.

• The procedure followed in Plant Layout Design consist in 4 phases, starting with gathering data and information, continuing with production and flow analysis, ongoing with identifying and supporting services, and ending with the implementation and a follow up evaluation.

Flow Diagram

• A flow diagram is a graphical diagram which shows the path traveled by each part from receiving to stores to fabrication of each part to final assembly to packout to warehousing to shipping.

Operations Charts

• An operation chart graphically shows the raw material, the buyouts, the fabrication sequence, the assembly sequence, the equipment needs, the time standards, and an indication of plant layout.

Flow Process Charts

• The flow process chart combines the operations chart with the process chart. It is a Quality Improvement Tool used specifically for a process. It is defined as a pictorial representation describing a process being studied or even used to plan stages of a project.

Inventory

• Inventories are tangible assets that incur costs, tie up working capital, consume space, and must be managed in and out. Most operations, capacity planning and scheduling and depend on inventory. Inventory are held for sale in the normal core of business, or used in producing goods and services for sale.

Types of inventory

• Merchandise inventory: goods held for sale, ready for sale without further processing.

• Raw materials inventory: materials stored that are used in production.

• Work-in-process inventory: partially completed goods.

• Finished goods inventory: manufactured goods, ready for sale.

Storage Rack Systems

• There are many designs of racks to be used in pallet storage. The most common are flow rack system, single deep rack, double deep rack, push back rack. Some other storage systems are carton flow rack, cantilever rack and drive-in rack.

Random Storage

• In random storage there is no assigned slot for any of the SKUs. Items are stored in any available location. Most commonly, this policy is implemented by storing items at the most convenient storage location available and retrieving on a First FIFO basis. This allows for inventory to be rotated while still providing some handling efficiency.

Dedicated Storage

• In dedicated storage systems, each SKU has a number of pre-assigned storage slots. During operation the closest empty slot that has been pre-assigned to the SKU is used for storage and retreival is on a FIFO basis.

Warehouse Optimization

Training • Training employees is inexpensive and will

likely have the greatest return on investment. Operations that lack adequate procedures and employee training are likely to suffer from poor quality, low productivity, safety issues, low employee morale, highly stressed supervisors and managers, and a general lack of control.

Tools • Making sure employees have the proper tools

readily available to perform their job functions can also have significant impact on operations. Time wasted by employees wandering around the warehouse searching for a pallet jack or a tape dispenser will certainly be more detrimental to the bottom line that will the cost of purchasing more of these low cost items.