production management plant location

7/28/2019 production management plant location

1/21

PLANT LOCATION

Module 2


2/21

Introduction

Plant layout planning includes decisionsregarding the physical allocation of theeconomic activity centers in a facility.


3/21

Facility Layout Definition

Afacility layoutis an arrangement of everything neededfor production of goods or delivery of services. Afacility

is an entity that facilitates the performance of any job. It

may be a machine tool, a work centre, a manufacturing

cell, a machine shop, a department, a warehouse, etc.(Heragu, 1997).
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V0H-4R2GS3S-2&_user=5674735&_coverDate=11%2F05%2F2007&_alid=646172600&_rdoc=2&_fmt=full&_orig=search&_cdi=5647&_sort=d&_docanchor=&view=c&_ct=211&_acct=C000053929&_version=1&_urlVersion=0&_userid=5674735&md5=e47ccd28a13defa3d980826b6a5a91edhttp://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V0H-4R2GS3S-2&_user=5674735&_coverDate=11%2F05%2F2007&_alid=646172600&_rdoc=2&_fmt=full&_orig=search&_cdi=5647&_sort=d&_docanchor=&view=c&_ct=211&_acct=C000053929&_version=1&_urlVersion=0&_userid=5674735&md5=e47ccd28a13defa3d980826b6a5a91ed


4/21

Objectives of Plant Layout The main objective consists of organizing equipment and

working areas in the most efficient way, and at the sametime satisfactory and safe for the personnel doing thework.

Sense of Unity

Minimum Movement of people, material andresources.

Safety

Flexibility


5/21

Objectives of Plant Layout

These main objectives are reached through the attainment of thefollowing facts:

Congestion reduction.

Better adjustment to changing conditions.

Better utilization of the workforce, equipment andservices.

Reduction of material handling activities and stockin process.

Reduction on health risks and increase on workerssafety.

Reduction on delays and manufacturing time, as

well as increase in production capacity.


6/21

Factors affecting Plant Layout

The factors affecting plant layout can be grouped into 8 categories: Materials

Machinery

Labor

Material Handling

Waiting Time Auxiliary Services

The building

Future Changes


7/21

Factors affecting Plant Layout

Materials

Main factors to be considered: size, shape, volume, weight, and the

physical-chemical characteristics, since they influence the

manufacturing methods and storage and material handling

processes.

Machinery

Regarding machinery, we have to consider the type, total available

for each type, as well as type and quantity of tools and equipment.

Its essential as well to know about space required, shape, height,

weight, quantity and type of workers required, risks for thepersonnel, requirements of auxiliary services, etc.


8/21

Factors affecting Plant Layout Labor

Environment considerations: employees safety, light conditions,ventilation, temperature, noise, etc.

Process considerations: personnel qualifications, flexibility, numberof workers required at a given time as well as the type of work to beperformed by them.

Material Handling

Material handling does not add value to the product; its just waste!

Objective: Minimize material handling as well as combining withother operations when possible, eliminating unnecessary and costlymovements.


9/21

Factors affecting Plant Layout The factors affecting plant layout can be grouped into 8

categories: Waiting time - Stock

Objective: Continuous Material Flow through the facility, avoiding

the cost of waiting time.

Resting time to cool down or heating up.Auxiliary Services

Support the main production activities at the plant:

Related to labor: Accessibility paths, fire protection installations,

supervision, safety, etc.

Related to material: quality control. Related to machinery: maintenance and electrical and water lines.

The auxiliary services represent around 30% of the space at a facility.


10/21

Factors affecting Plant Layout The factors affecting plant layout can be grouped into 8

categories: The building

If it has been already selected, its characteristics will be a constraint

at the moment of designing the layout, which is different if the

building has to be built.

Future changes

One of the main objectives of plant layout is flexibility.

Its important to forecast the future changes to avoid having an

inefficient plant layout in a short term.


11/21

Plant Location

Criterion WeightingPossible Factory Location

A B C D EPROXIMITYTO:

Skilled labour 7 2 14 3 21 0 0 1 7 4 28

A pool of unskilled labour 8 5 40 2 16 0 0 4 32 2 16

A motorway 7 3 21 2 14 1 7 3 21 4 28

An airport 4 1 4 3 12 4 16 2 8 2 8

The sea / a river 0 2 0 5 0 5 0 2 0 1 0

Housing 5 4 20 3 15 0 0 3 15 4 20

Amenities 5 3 15 2 10 0 0 2 10 3 15

Potential for expansion 7 2 14 1 7 5 35 3 21 2 14

Availability of grants/incentives 8 1 8 2 16 5 40 1 8 3 24

Safety 2 3 6 2 4 5 10 2 4 2 4

Planning constraints 5 2 10 3 15 5 25 4 20 2 10

Environmental impact 4 3 12 2 8 4 16 1 4 2 8

TOTAL 164 138 149 150 175


12/21

Process Layouts

General purpose & flexible resources

Lower capital intensity & automation

Higher labor intensity

Resources have greater flexibility Processing rates are slower

Material handling costs are higher

Scheduling resources & work flow is more complex

Space requirements are higher


13/21

Process layout

Receiving Grin-

Mills ders

Raw matl. Large number

of

storage Assem- low volume

bly products

Drills

Planers

Finished

Inspec-

goodsLathes Automatics tion storage

Part A

Part B

Facility Layout


14/21

Product Layouts

Specialized equipment

High capital intensity & wide use of

automation

Processing rates are faster

Material handling costs are lower

Less space required for inventories Less volume or design flexibility


15/21

Product layout

Raw matl. Fabrication

Rec- storage line-part B

eiving Fabrication Planer

line-part A

Finished Lathe

goods Drillstorage Mill

Mill

Drill

Grinder

Mill

Assembly line Automatic

Facility Layout

Small numberofhigh volumeproducts


16/21

Advantages: Reduced material handling activities.

Work In Process almost eliminated.

Minimum manufacturing time.

Simplification of the production planning and control systems. Tasks simplification.

Disadvantages:

No flexibility in the production process.

Low flexibility in the manufacturing times.

High capital investment.

Every workstation is critical to the process.- The lack of personnel or

shut down of a machine stops the whole process.

Monotonous work.


17/21

Cellular Plant Layout

L M

D G

M M

D G

L L

L G

ASSEMBLY

CELL 3

ASSEMBLY

CELL 2

ASSEMBLY

CELL 1

Group Technology

Each cell manufactures products

belonging to a single family.

Cells are autonomous manufacturing

units which can produce finished parts.

Commonly applied to machined parts.

Often single operators supervising

machines in a cell, with robots for

materials handling.

Productivity and quality maximised.

Throughput times and work in progresskept to a minimum.

Flexible.

Suited to products in batches and where

design changes often occur.


18/21


19/21

Other Plant Layouts

PRODUCT

MATERIAL

MATERIAL

LABOUR

LABOUR

COMPONENTS

COMPONENTS

Fixed Position Layout (right)

Single large, high cost components or

products.

Product is static. Labour, tools andequipment come to the work rather than

vice versa.


20/21

CIA 1The groups shall name themselves based on any production management concept

(No two groups shall have the same name)

Each member of the group shall give a write up of about 200 words on the concept

(Members shall not repeat or copy any of their team mates content)

Date of Submission: 10/12/2012

In case two or more groups have the same names, by mistake or coincidence

the group that submits first shall be final and the others have to repeat !!


21/21

CIA COMPONENT 2The groups shall identify an industry and product (No two groups shall work on

the same product or industry)

The groups to report on the following

Plant location (Factors affecting location-To be justified)

Plant layout (Factors affecting layout-To be justified, with suggested layout diagram)

The report must clearly indicate the individuals contribution.

Date of Submission: 10/12/2012

In case two or more groups have worked on the same product or industry,by mistake or coincidence the group that submits first shall be final and the

others have to repeat !!

[email protected]

production management plant location

Documents