plant location - jegadeesan

8/8/2019 PLant Location - Jegadeesan

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PLANT LOCATION(FLCD-Facility Location Decision)

The degree of significance for the selection of location for any enterprisemainly depends on its size and nature.

Sometimes the nature of the product itself suggests some suitable location.

(Like a small scale industry mainly selects the site where in accordance with

its capacity, the local mkt. for the product is available).

Plant Location : is defined as the determination of that location which whenconsidering all relevant factors will proved minimum cost deliveredto customer.

The Cost of Goods delivered to the customer depends upon.

a) The cost of gathering the Raw materials & Components .

b) The cost of converting the materials to finished products .c) The cost of distributing the finished products to consumer.

Therefore performance of an enterprise is considerably affected by its location.


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MEASURES FOR THE SELECTION OF LOCATION

(Factors influencing plant location)

1. Involving quantitative factors.

(a) Comparative cost analysis/Cost Economics :

(i.e. Capital cost, operating cost, distribution cost).

(a) Break-even and dimensional analysis.

2. Comparison of qualitative factors.


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PLANT LAYOUT

Layout identically involves the allocation of space and the arrangement of

equipments in such a manner that overall operating costs are minimized.

Plant layout is an effort to arrange machines and equipments, and other services

within a predesigned building, ensuring steady, smooth and economical flow ofmaterials.

Layout begins with plant location and continues through three further levels

namely:

1. The layout of deptt. within the site.

2. Layout of items within the deptt.

3. Layout of individual work places.


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WHY LAYOUT PROBLEMS EXISTS Enlargement or contraction of existing deptt.

Movement of a deptt. due to change in the design of product.

Addition of some new deptt. eg. Computerization.

Replacement or addition of some new facility/machinery .

STAGES OF PLANT LAYOUT1. Product demand

2. Production requirements.

3. Components and parts analysis

4. Work methods and measurements

5. Machine requirements.

6. Handling and movement requirements.

7. Space requirements.


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OBJECTIVES OF LAYOUT1. Economies in materials, facilitate mfg process and handling of semi-finished goods.

2. Proper and efficient utilization of available floor space .

3. To ensure that work proceeds from one point to another point inside the plant withoutany delay.

4. Provision of better supervision and ctrl of operations.

5. Careful planning to avoid frequent changes in layout which may result in undue increasein cost of production.

6. To provide adequate safety to the workers from accidents.

7. To meet the quality and capacity requirements in the most economical manner.

8. Provision of medical facilities and cafeteria at suitable and convenient places.

9. To provide efficient material handling system.

10. To suggest improvements in production process and work methods.


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ADVANTAGES OF A GOOD LAYOUT

TO THEWORKER:-

1. Lesser number of operations and material handling.2. Reduction in length of motions b/w operations minimizes production time .

3. More Labour productivity i.e. more output per man-hour i.e. high turnover.

4. More safety and security to workers from accidents.

5. Better working conditions resulting improved efficiency.

INMANUFACTURING COSTS

1. Maintenance and replacement costs are reduced.

2. Loss due to waste and spoilage is minimized.

3. Improved quality of product with reduction in handling i.e. movement, time and cost.

IN PRODUCTION CONTROL & SUPERVISION

1. Provides more space for production operations.

2. Control & supervision operations are provided at appropriate points.

3. Better and convenient storage facilities.

4. Efficient arrangement for receipt, transportation, delivery of raw material & finishedgoods.

5. Results in less inspection activity.


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A good layout leads to efficient and optimum use of

machines, labour and capital by minimizing per unitproduction time and maintaining a proper balance between

various production departments.

This leads to reduction in capital investment.

There is effective utilization of floor space facilitating ease ofoperations, maintenance, service and supervision.

Different Types of Layout :

STATIONARYLAYOUT (FIXED POSITION LAYOUT)

PRODUCT LAYOUT (Line Production Layout)

PROCESS LAYOUT (Layout by function)

HYBRID LAYOUT (Combined Layout)

RESULTANT BENEFITS OF GOOD LAYOUT


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STATIONARY LAYOUT(FIXED POSITION LAYOUT)

This type of layout is used in situations where the semi finished goods

are of large size & of very heavy weight & their movement from one

place to the other is not possible.

Fixed position layout minimize the product movement.

Here men, equipment and the raw-material is moved to a place where all

the mfg activities are carried out .

Ex: Ship building, Air Craft manufacture, bridge constructions, dams

constructions etc.


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Types of layout In Product Layout, machines are laid out in sequence of operations along

the flow lines. Hence this is called as the Line Layout.

The position & order in the sequence for a machine performing

particular operation is fixed.

Once a machine is in line, it cannot perform any other operation , which

is not designated in the sequence of operations.

There is a continuous flow of material during the production process

from start to finish.

This layout is adopted when volume of production is high, the nature of

work is standardized.

Ex:- Auto manufacturing plants are classic examples for this layout

PRODUCT LAYOUT

(Line Production)


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PRODUCT LAYOUT

ADVANTAGES:1. Ensures smooth and regular flow of material and finished goods.

2. Provides economy in materials and labour by minimizing waster.

3. Short processing time.

4. Reduces material handling.

5. Low cost labour procurement and lesser training requriements.

6. Lesser Inspection.

7. Floor area is more production

8. Easy production control.

9. Minimum need for buffer stock.

DISADVANTAGES:-1. Product layout is inflexible in nature.

2. Chances of production line to shut down.

3. Supervision is more difficult.

4. Requires heavy capital investment.


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PROCESS LAYOUT

(Layout by function)

Here machines performing same type of operations are

installed at one place .i.e. plant is grouped according to

functions e.g. all drilling machines are located at one place

known as drilling section.

This type of layout is most appropriate for intermittent (JOB

and BATCH) type of mfg systems where small quantity of a

large range of products are to be manufactured e.g. machine

tools etc.

Process layout is normally used where expensive machinery

is required .


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HYBRID LAYOUT(Combined Layout)

The best solution in layout is the combination of Process and Product

Layout for batch production.

i.e. A company producing several different styles of items but sequence ofoperations (such as Sheering, Punching, Bending, Spot Welding, Spray

Painting , Assembling, Fixing lock, hinges, Packing & Shipping). for each

item is generally the same, can make profitable use of such a layout.

In this Layout, each process is setup as a unit and these units are arrangedinto a Product Layout.

Ex: Steel Furniture's ( Desks, Filing Cabinets, Chairs, Tables).


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COMPUTER PACKAGES FOR LAYOUT ANALYSIS

In the past, layout planning was mostly carried out by trial and error method.

Computer programs have now been developed to assist the layout analysts in identifying such

a layout that appears to meet the specified conditions.

Following are some of the computer packages for layout planning:-

CRAFT (Computerized relative allocation of facility)

CORELP (Computerized relationship layout planning).

ALDEP (Automated layout design programs.

CRAFT:

This is one of the earliest computer programs developed in the field of layout by

IBM.

INPUTS REQUIRED FOR CRAFT:

Material flow per unit time

Cost per unit per distance moved.

Space requirements in the form of an initial layout.

APPLICAPILITY OF CRAFT:

Applicable to took manufacturing & nonmanufacturing organizations.


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FLOW CHART FOR CRAFT

Input parameters and starting solution

Output cost and other desired information

Analyse all feasible exchanges select one with largest potential cost reduction

Has not been found

Make the change

Recompute affected matrices

CRAFT HOW ITWORKS?

Craft considers exchange between locations repeatedly until no further

significant cost reduction is possible.

The program output of CRAFT is in the form of facilities in a basic rectangular

form that is close to the lowest cost layout.

ASSUMPTIONS OF CRAFT:-

It assumes that costs vary linearly with distance.

Movement between departments . occurs along straight line.

Start

Stop

NO


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CORELAP:

Uses the concept of A,E,I,O,U, closeness ratings, space requirements, maximum building

length to breadth ratio for developing the layout.

(A - Absolutely Essential. E - Essential I - Important O- Ordinary U - Unimportant)

INPUTS FOR CORELAP:-

Number of departments and area requirements

Relationship charts.

Weightages for REL charts.

Location of pre-assigned department on layout.

Maximum building length to breadth ratio .

HOW CORELAPWORKS?

Compute the total closeness rating (TCR).

Highest TCR is selected and located.

Next locate A of the relationship.

Next locate E of the relationship and so on

To break the tie, chose highest TCR.

ALDEP:

Input consists of building specification & desired preference matrix of location relationship.

HOW ALDEPWORKS?:-

The program starts with random location of a given department. It then identifies another

department which has high relations to the first one. Having found the same it selects another department and

repeats the first operation. This repeats till all departments are covered.

plant location - jegadeesan

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