PLANT LOCATION &

PLANT LAYOUT

PLANT LOCATION :

A plant should be located at a place where inhabitants are interested in it’s success, the product can be sold profitably and production cost is minimum – DR. Vishweshwarya.A plant location is often result of compromise among conflicting social, economic and geographical conditions – Lansburg.

PLANT LOCATION :The principle factors to be considered for the location of a plant :Availability of Raw materialsNearness to Potential marketSupply of LabourTransportation facilitiesAvailability of Utilities : Water, Fuel, PowerSuitability of Climate & LandLocal Community ConsiderationsPolitical Strategic ConsiderationsEnvironmental Impact, And Effluent Disposal.

PLANT LOCATION :Availability of Raw Materials :The Availability And Price Of Suitable Raw Materials Will Often

Determine The Site Location. Plants Producing Bulk Chemicals Are Best Located Close To The Source Of The Major Raw Material.EX: Soda Ash Plant Should Be Located Near The Salt Lakes Or Near

Sea, Where Sodium Chloride Is Available Abundantly.

Nearness to Potential Market :For Materials That Are Produced In Bulk Quantities: Such As Cement, Mineral

Acids And Fertilizers, the Plant Should Be Located Close To The Primary Market.

PLANT LOCATION :

Supply of Labour :Local Trade Union Customs And Restrictive Practices Will

Have To Be Considered When Assessing The Availability And Suitability Of The Labour For Recruitment And Training.

An Adequate Pool Of Unskilled Labour Available Locally.

Transportation Facilities :The Transport Of Materials And Products To And From

Plant Will Be An Overriding Consideration.If Practicable, A Site Should Be Selected That Is Close to

At Least Two Major Forms Of Transport: Road, Rail, Waterway Or A Seaport.

PLANT LOCATION :

Availability of Utilities : Water, Fuel, Power :The Word “Utilities” Is Now Generally Used For The

Ancillary Services Needed In The Operation Of Any Production Process.

Electricity: Power Required For Electrochemical

Processes, Motors, Lightings, And General Use.Steam For Process Heating: The Steams Required For

The Process Are Generated In The Tube Boilers Using Most Economic Fuel.

Water For General Use: The Water Required For The General Purpose Will Be Taken From Local Water Supplies.

PLANT LOCATION :

Suitability of Climate & Land :Adverse Climatic Conditions At Site Will Increase Costs.

Abnormally Low Temperatures Will Require The Provision Of Additional Insulation And Special Heating For Equipment And Piping.

Sufficient Suitable Land Must Be Available For The Proposed Plant And Future Expansion. The Land Should Be Ideally Flat, Well Drained And Have Load-Bearing Characteristics. A Full Site Evaluation Should Be Made To Determine The Need For Piling Or Other Foundations.

PLANT LOCATION :

Local Community Considerations:The Proposed Plant Must Fit In With And Be Acceptable

To The Local Community. Full Consideration Must Be Given To The Safe Location Of The Plant. So That It Does Not Impose A Significant Additional Risk To The Community.

Political And Strategic Considerations: Capital Grants, Tax Concessions, And Other Inducements

Are Often Given By Governments To Direct New Investment To Preferred Locations; Such As Areas Of High Unemployment. The Availability Of Such Grants Can Be The Overriding Consideration In Site Selection.

PLANT LOCATION :

Environmental Impact, And Effluent Disposal:

All Industrial Processes Produce Waste Products, And Full Consideration Must Be Given To The Difficulties And Coat Of Their Disposal. The Disposal Of Toxic And Harmful Effluents Will Be Covered By Local Regulations, And The Appropriate Authorities Must Be Consulted During The Initial Site Survey To Determine The Standards That Must Be Met.

LAYOUT PLANNING :Layout planning in manufacturing and service organizations involves the physical arrangement of various resources available in the system to improve the performance of the operating system, there by providing better customer service.

LAYOUT PLANNING :

Plant layout begins with plant location and continues through 3 further levels:

Layout of department with in site.Layout of items with in the department.Layout of individual work place.

Objectives of Plant Layout :Economies of materials, facilitation of manufacturing

and handling of goods.Proper and efficient use of floor space.Ensure proper flow of goods and processes without any

delay.Provision of supervision and control.

LAYOUT PLANNING :

Objectives of Plant Layout :Careful planning to avoid changes and re-layout of a

plant.Provision of safety to workers.Meet quality and capacity requirement in the most

economical manner.Provision of adequate medical facilities and refreshment

facilities.Have enough of material handling space.Space for future expansion.

LAYOUT PLANNING :

Implications of Layout Planning :The relationship between “volume-variety-flow” provides

crucial inputs to the layout problem.As the flow becomes more cumbersome, the type of

layout may significantly influence the ability of the operations manager to effectively plan and control operations on the shop floor.

Types of Layouts:Over the years, operations management and

practitioners have evolved four major types of layouts.

LAYOUT PLANNING :

Types of Layouts:Process LayoutProduct LayoutGroup Technology LayoutFixed Position Layout

Process Layout:A process layout is an arrangement of resources on the

basis of the process characteristics of the resources available.

Product layout has a disorganized flow.

LAYOUT PLANNING :

Process Layout:

LAYOUT PLANNING :

Product Layout :In a product layout, the resources are placed to follow

exactly the process sequence dictated by a product.

LAYOUT PLANNING :

Group Technology Layout:Group Technology Layout is a philosophy that seeks to

exploit the commonality in manufacturing and uses this as the basis for grouping components and resources. The GT is often known as Cellular Manufacturing.

LAYOUT PLANNING :Fixed Position Layout:

Fixed Position Layout are typically employed in large – project type organizations.

LAYOUT PLANNING :

Volume-Variety-Flow Implications For Layout Planning :

Very Low Variety

Medium Variety

High Variety One-off Execution

Flow Attributes Stream lined flow

Multiple Flow paths

Disorganized Flow

Jumbled Flow

Volume Attributes

High Volume Mid-Volume Low-Volume One Piece

Examples of Operating Systems

Industry: Mass Product/Service Provider

Batch Manufacturing Firms

Job shops: Customized product/Service

Project Shops

Types of Layout Used

Product Layout Group technology Layout

Process Layout Fixed Position Layout