MODULE II
Module II
Facilities Planning
Facilities location may be defined as selection of suitable location or site or place where the factory or plant or facilities to be installed, where plant will start functioning. The development of a location strategy depends upon the type of firm being considered. Industrial location analysis decisions focus on minimising costs; retail and professional service organisations typically have a focus of maximising revenue. Warehouse location, on the other hand, may be determined by a combination of cost and speed of delivery. The objective of location strategy is to maximise the benefit of location to the firm. Facility planning has developed, in the past decade, into a major thriving business sector and discipline. One of the major reasons for new facilities is the global economic boom that has been accompanied by an enhancement of capacity worldwide.In addition to the global economic boom, there are several other reasons for changing or adding locations:
1. The cost or availability of labour, raw materials, and supporting resources often change. These changes in resources may spur the decision.
2. As product markets change, the geographical region of demand may shift. For example, many international companies find it desirable to change facility location to provide better service to customers.
3. Companies may split, merge, or be acquired by new owners, making facilities redundant.
4. New products may be introduced, changing the requirement and availability of resources.
5. Political, economic and legal requirements may make it more attractive to change location. Many companies are moving facilities to regions where environment or labour laws are more favourable.
Well-planned facilities enable an organization to function at its most efficient and effective level, offering real added value improvements to the organization's core business.
Plant Location
Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per its own requirements and circumstances. Each individual plant is a case in itself. Businessman should try to make an attempt for optimum or ideal location.
An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution. For achieving this objective, small-scale entrepreneur can make use of location analysis for this purpose.
Location Analysis
Location analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given enterprise. It consists the following:
(a) Demographic Analysis: It involves study of population in the area in terms of total population (in no.), age composition, per capita income, educational level, occupational structure, etc.,
(b) Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites.
(c) Competitive Analysis: It helps to judge the nature, location, size and quality of competition in a given trade area.
(d) Traffic analysis: To have a rough idea about the number of potential customers passing by the proposed site during the working hours of the shop, the traffic analysis aims at judging the alternative sites in terms of pedestrian and vehicular traffic passing a site.
(e) Site economics: Alternative sites are evaluated in terms of establishment costs and operational costs under this. Costs of establishment is basically cost incurred for permanent physical facilities but operational costs are incurred for running business on day to day basis, they are also called as running costs.
Selection Criteria
The important considerations for selecting a suitable location are given as follows:
a) Natural or climatic conditions.
b) Availability and nearness to the sources of raw material.
c) Transport costs-in obtaining raw material and also distribution or marketing finished products to the ultimate users.
d) Access to market: Small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas.
e) Availability of Infrastructural facilities such as developed industrial sheds or sites, link roads, nearness to railway stations, airports or sea ports, availability of electricity, water, public utilities, civil amenities and means of communication are important, especially for small scale businesses.
f) Availability of skilled and non-skilled labour and technically qualified and trained managers.
g) Banking and financial institutions are located nearb Locations with links: to develop industrial areas or business centres result in savings and cost reductions in transport overheads, miscellaneous expenses.
i) Strategic considerations of safety and security should be given due importance.
j) Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a particular location are made available. Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and liberalization. Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution control and decentralization of industries.
k) Residence of small business entrepreneurs want to set up nearby their homelands.
One study of location considerations from small-scale units revealed that the native place or homelands of the entrepreneur was the most important factor. Heavy preference to homeland suggests that small-scale enterprise is not freely mobile. Low preference for Government incentives suggests that concessions and incentives cannot compensate for poor infrastructure.
Factors Determining Plant Location
To be systematic, in choosing a plant location, the entrepreneur would do well to proceed step by step, The location of the facilities is carried out in four stages i.e., First stage-Selection of the country i.e., within the country or abroad; Second Stage- Selection of a general territory or region; Third Stage- Selection of a community or locality and Fourth Stage- Selection of Specific site.
I. First stage – Selection of the country i.e., within the country or abroad
The first stage of plant location is to whether the plant should be located in home country or abroad. Due to globalization, a company can have its plant outside its own country. The increasing internationalization of business, the issue of home or foreign country is gaining greater relevance. If the management has to decide on the foreign location, next step will be to decide the particular country for location. This is necessary because countries across the world are vying with each other to attract foreign investments. The choice of particular countries depend on such factors as political stability, export and import quotas,currency and exchange rates, cultural and economic peculiarities, and natural or physical conditions.
II. Second Stage – Selection of a general territory or region
Different factors to be considered while choosing a region are:
(i) Availability of Raw Materials: A Plant location or a manufacturing unit is in the conversion of the raw materials into finished goods, it is very essential that the transport of raw material is at minimum cost. In industries like, sugar, paper, iron and steel are engaged in solvent extraction of oil from rice bran, the china clay washery, factories manufacturing low tension porcelain insulators, and the like should be located near the sources of their raw materials. Nearness to raw materials offers such advantages as:
1. Reduced cost of transportation
2. Regular and proper supply of materials uninterrupted by transportation breakdowns
3. Saving in the cost of storage of materials. Raw materials in this context may be classified into two types, viz.
(i) Weight-losing or gross materials
(ii) Non-weight losing or pure materials: Weight-losing materials lose their weight during the manufacturing process. The cost of transporting these raw materials from the source of supply to the place of manufacture is more than the cost of transporting the finished products from the factory to the market. Examples of these raw materials are iron ore, sugarcane, coal, timber etc. Industries using such materials tend to be located at the source to save on the cost of transportation. The Non-weight losing materials, they grow in weight after they are converted into finished goods. The cost of transporting the finished goods is more than that of raw materials. Examples of such non-weight-losing materials are cotton and woollens.
(ii) Nearness to the Market: Since the goods are produced for sale they should be near the market. The cost of reduction in the cost of transporting finished goods depends upon the likes and dislikes of the consumers. The Consumer should get some advantages such as:
(i) The Consumer should get or render prompt service.
(ii) Consumer should be provided with after-sales service
(iii) Consumers should get replacement orders without delay. Industries like non-weight-losing raw materials, industries producing perishable or bulky products and servicing units tend to be located near their market.
(iii) Availability of Power: Power is essential to move the wheels of an industry. Coal, electricity, oil and natural gas are the sources of power. Industries using electricity have to be located at a place where electric power is available regularly and at cheap rates.
(iv) Transport Facilities: Transport facilities are essential for bringing raw materials and men to the factory and also for carrying the finished products from the factory to the market. A place which is well connected by rail, road, and sea is ideal for a plant location. In extreme cases, transport may follow the industries. If a public sector unit has been started in a remote place, the government has to provide transport facilities and also cater to the requirements of the product.
(v) Suitability of Climate: The climate has its own importance with regard to the location of the plant. The nature of production depends upon the climatic conditions. Some industries are placed where humid conditions may be required for the product like the cotton textile which is in Mumbai, the jute industry in Calcutta etc. The scientific and technological developments have enabled us to create artificial conditions. The entrepreneur would do well to take advantage of a natural climate because the cost of providing an artificial climate is quite exorbitant. Extreme climatic conditions adversely affect labour efficiency. There is heavy industrial concentration in the cool and temperate regions rather than in the tropical and polar regions.
(vi) Government Policy: The influence of Government policies and programs on plant locations is apparent in every country, particularly in planned economies like ours. In India, there are several backward regions, which are selected for the location of the plant, which would generate the economy of the region and on a larger scale canvas, the national economy. The Government of India has been influencing plant location in a number of ways. Some of these are:
1. Licensing policy;
2. Freight rate policy;
3. Establishing a unit in the public sector in a remote area and developing it to attract other industries;
4. Institutional finance and government subsidies.
The influencing of government policy was only after the Independence. Before the Independence, purely commercial considerations were decided as per industrial locations. Such has been the case with TISCO and IISCO. It was because there was no over solicitous government which was ready to come to the rescue of a sick unit to save it from bankruptcy, no ideologue anxious to give a face-lift to the losing public sector concerns by allowing them to jack up prices, give protection and capitalize losses by converting them into equity.
(vii) Competition between States: States via with each other to attract new industries. Various states offer investment subsidies and sales tax exemption to new units. The incentives may not be of a big help to the big sized plants. But for small and medium-sized plants, the incentive does matter. The owner of these plants certainly consider the incentive while selecting the region.
III. Third Stage – Selection of a community or locality
Having selected the general territory / region, one would have to go in for site / community selection. Some factors relevant for this are:
(a) Community facilities: These involve factors such as quality of life which in turn depends on availability of facilities like education, places of worship, medical services, police and fire stations, cultural, social and recreation opportunities, housing, good streets and good communication and transportation facilities.
(b) Community attitudes: These can be difficult to evaluate. Most communities usually welcome setting up of a new industry especially since it would provide employment opportunities to the local people directly or indirectly. However, in case of polluting industries, they would try their utmost to locate them as far away as possible. Sometimes because of prevailing law and order situation, companies have been forced to relocate their units. The attitude of people as well as the state government has an impact on location of polluting and hazardous industries.
(c) Ecology and pollution: These days, there is a great deal of awareness towards maintenance of natural ecological balance. There are quite a few agencies propagating the concepts to make the society at large more conscious of the dangers of certain available actions.
(d) Transportation facilities: The site should be accessible preferably by road and rail. The dependability and character of the available transport carriers, frequency of service and freight and terminal facilities is also worth considering.
(e Supporting industries and services: The availability of supporting services such as tool rooms, plant services etc. need to be considered.
(f) Land costs: These are generally of lesser importance, as they are nonrecurring and possibly make up a relatively small proportion of the total cost of locating a new plant.
IV. Fourth Stage – Selection of Specific site
Three factors needs to be analysed in selection of an exact site, and these are:
(a) Site size: The plot of land must be large enough to hold the proposed plant and parking and access facilities and provide room for future expansion.
(b) Topography: The topography, soil structure and drainage must be suitable. If considerable land improvement is required, low priced land might turn out to be expensive.
(c) Waste disposal: The facilities required for the disposal of process waste including solid, liquid and gaseous effluent need to be considered. The plant should be positioned so that prevailing winds carry any fumes away from populated areas and that the waste may be disposed off properly and at reasonable costs.
Product Design
Product design simply means conversion of ideas into reality. In order to survive in current globally competitive environment, business organizations needs to design, develop and introduce new products in the market. It is an important part of organizations survival and growth strategy. Developing the new products and launching them in the market is the biggest challenge faced by the organizations.
The entire process of need identification to physical manufactures of product involves three functions namely, marketing, product development and manufacturing.
· Through marketing organizations tends to identify customer needs.
· Product development translates the needs of customers given by marketing into technical specifications and designing the various features into the product.
· Manufacturing has the responsibility of selecting the processes by which the product can be manufactured.
Process Design
Process design means selection of optimum decision route for converting the raw material into finished goods. During process design the operational manager needs to consider on selection of process, choice of technology, process flow analysis and layout of the facilities.
Plant Layout
Plant layout refers to the physical arrangement of production facilities. It is the configuration of departments, work centres and equipment in the conversion process. It is a floor plan of the physical facilities, which are used in production. According to Moore “Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipment and all other supporting services along with the design of best structure to contain all these facilities”.
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.”
Objectives of Plant Layout
The primary goal of the plant layout is to maximise the profit by arrangement of all the plant facilities to the best advantage of total manufacturing of the product. The objectives of plant layout are:
1. Streamline the flow of materials through the plant.
2. Facilitate the manufacturing process.
3. Maintain high turnover of in-process inventory.
4. Minimise materials handling and cost.
5. Effective utilisation of men, equipment and space.
6. Make effective utilisation of cubic space.
7 Flexibility of manufacturing operations and arrangements.
8. Provide for employee convenience, safety and comfort.
9. Minimize investment in equipment.
10. Minimize overall production time.
11. Maintain flexibility of arrangement and operation.
12. Facilitate the organizational structure.
Principles of Plant Layout
1) Principle of integration: A good layout is one that integrates men, materials, machines and supporting services and others in order to get the optimum utilisation of resources and maximum effectiveness.
2) Principle of minimum distance: This principle is concerned with the minimum travel (or movement) of man and materials. The facilities should be arranged such that, the total distance travelled by the men and materials should be minimum and as far as possible straight line movement should be preferred.
3) Principle of cubic space utilisation: The good layout is one that utilise both horizontal and vertical space. It is not only enough if only the floor space is utilised optimally but the third dimension, i.e., the height is also to be utilised effectively.
4) Principle of flow: A good layout is one that makes the materials to move in forward direction towards the completion stage, i.e., there should not be any backtracking.
5) Principle of maximum flexibility: The good layout is one that can be altered without much cost and time, i.e., future requirements should be taken into account while designing the present layout.
6) Principle of safety, security and satisfaction: A good layout is one that gives due consideration to workers safety and satisfaction and safeguards the plant and machinery against fire, theft, etc.
7) Principle of minimum handling: A good layout is one that reduces the material handling to the minimum.
Factors Influencing Plant Layout
Some of the major factors which affect plant layout are: (a) Policies of management (b) Plant location (c) Nature of the product (d) Volume of production (e) Availability of floor space
(f) Nature of manufacturing process and (g) Repairs and maintenance of equipment and machines (h) Types of Machines (i) Climate.
Policies of management: It is important to keep in mind various managerial policies and plans before deciding plant layout. Various managerial policies relate to future volume of production and expansion, size of the plant, integration of production processes; facilities to employees, sales and marketing policies and purchasing policies etc. These policies and plans have positive impact in deciding plant layout.
(a) Plant location: Location of a plant greatly influences the layout of the plant. Topography, shape, climate conditions, and size of the site selected will influence the general arrangement of the layout and the flow of work in and out of the building.
(b) Nature of the product: Nature of the commodity or article to be produced greatly affects the type of layout to be adopted. In case of process industries, where the production is carried in a sequence, product layout is suitable. For example, soap manufacturing, sugar producing units and breweries apply product type of layout. On the other hand in case of intermittent or assembly industries, process type of layout best suited. For example, in case of industries manufacturing cycles, typewriters, sewing machines and refrigerators etc., process layout method is best suited. Production of heavy and bulky items need different layout as compared to small and light items. Similarly products with complex and dangerous operations would require isolation instead of integration of processes.
(c) Volume of production: Plant layout is generally determined by taking into consideration the quantum of production to be produced. There are three systems of production viz.,
(i) Job production: Under this method peculiar, special or non- standardized products are produced in accordance with the orders received from the customers. As each product is non- standardized varying in size and nature, it requires separate job for production. The machines and equipment’s are adjusted in
such a manner so as to suit the requirements of a particular job. Job production involves intermittent process as the work is carried as and when the order is received. Ship building is an appropriate example of this kind. This method of plant layout viz., Stationery Material Layout is suitable for job production.
(ii) Mass production: This method involves a continuous production of standardized products on large scale. Under this method, production remains continuous in anticipation of future demand. Standardization is the basis of mass production. Standardized products are produced under this method by using standardized materials and equipment. There is a continuous or uninterrupted flow of production obtained by arranging the machines in a proper sequence of operations. Product layout is best suited for mass production units.
(iii) Batch production: It is that form of production where identical products are produced in batches on the basis of demand of customers or of expected demand for products. This method is generally similar to job production except the quality of production. Instead of making one single product as in case of job production a batch or group of products is produced at one time, It should be remembered here that one batch of products has no resemblance with the next batch. This method is generally adopted in case of biscuit and confectionary manufacturing, medicines, tinned food and hardware’s like nuts and bolts, etc.,(d) Availability of floor space: Availability of floor space can be other decisive factor in adopting a particular mode of layout. If there is a scarcity of space, product layout may be undertaken. On the other hand more space may lead to the adoption of process layout.
(e) Nature of manufacturing process: The type of manufacturing process undertaken by a business enterprise will greatly affect the type of layout to be undertaken. A brief mention of various processes is given us under:
(i) Synthetic process: Under this process two or more materials are mixed to get a product. For example, in the manufacture of cement, lime stone and clay are mixed.
(ii) Analytical process: This is just the reverse of synthetic process. Under this method different products are extracted from one material. For example, from crude oil, petroleum, gas, kerosene and coal tar etc. are extracted.
(iii) Conditioning process: Under this process the original raw material is given the shape of different products and nothing is added to it. Jute is an important example of this kind.
(iv) Extractive process: This method involves the extraction of a product from the original material by the application of heat or pressure. This involves the process of separation, for example, aluminium is separated from bauxite.
(f) Repairs and maintenance of equipment and machines: The plant layout should be designed in such a manner as to take proper care with regard to repairs and maintenance of different types of machines and equipment being used in the industry. The machines should not be installed so closely that it may create the problems of their maintenance and repairs. It has been rightly said that “Not only should access to parts for regular maintenance such as oiling, be considered in layout but also access to machine parts and components when replacement and repair are fairly common”.
(g) Type of machines: Stationary layout is preferable if machines are heavy and emit more noise. Such heavy machinery can be fitted on the floor. Adequate space should be provided for the location of machines and also there should be sufficient space between them to avoid accidents.
(h) Climate: Temperature, illumination, ventilation should be considered while deciding on the type of layout. The above factors should be considered in order to improve the health and welfare of employees.
Classification of Plant Layout
Plant layout is the most effective physical arrangement, either existing or in plans of industrial facilities i.e., arrangement of machines, processing equipment and service departments to achieve greatest co-ordination and efficiency of 4 M’s (Men, Materials, Machines and Methods). Some of the important types of plant layout are:
1) Product or line layout
2) Process or functional layout
3) Fixed Layout
4) Hybrid Layout
5) Cellular Manufacturing Layout
6) Services Layout
Product layout
Product layouts, also termed line layouts, arrange the resources required for a product or service around the needs of that product or service. In manufacturing applications such as assembly lines with a high volume of a standard product the products will move in a flow from one processing station to the next. In contrast to the process layout in which products move to the resources, here the resources are arranged and dedicated to a particular product or service. The term product layout refers to the arrangement of the resources around the product or service. In services the requirements of a specific group of customers are identified and resources setup sequentially so the customers flow through the system, moving from one stage to another until the service is complete. Examples of product layouts include car assembly, self-service cafes and car valeting.
Advantages
(a) Removal of obstacles in production: Product layout ensures unrestricted and continuous production thereby minimising bottlenecks in the process of production, this is because work stoppages are minimum under this method.
(b) Economies in material handling: Under this method there are direct channels for the flow of materials requiring lesser time which considerably eliminate back-tracking of materials. On account of this, cost of material
handling is considerably reduced. This is greatly helpful in achieving desired quality of the end product.
(c) Lesser manufacturing time: Under this method (as already pointed), backward and forward handling of materials is not involved, it leads to considerable saving in manufacturing time.
(d) Lesser work in progress: On account of continuous uninterrupted mass production, there is lesser accumulation of work in progress or semi-finished goods.
(e) Proper use of floor space: This method facilitates proper and optimum use of available floor space. This is due to non- accumulation of work in progress and overstocking of raw materials.
(f) Economy in inspection: Inspection can be easily and conveniently undertaken under this method and any defect in production operations can be easily located in production operations. The need for inspection under this method is much less and can be confined at some crucial points only.
(g) Lesser manufacturing cost: On account of lesser material handling, inspection costs and fullest utilisation of available space, production costs are considerably reduced under this method.
(h) Lesser labour costs: Due to specialisation and simplification of operations and use of automatic simple machines, employment of unskilled and semi-skilled workers can carry on the work. The workers are required to carry routine tasks under this method. This leads to lesser labour costs.
(i) Introduction of effective production control: Effective production control on account of simple operation of this method can be employed successfully. Production control refers to the adoption of measures to achieve production planning.
Disadvantages of Product Layout
(a) Lesser flexibility: As work is carried in sequence and process arranged in a line, it is very difficult to make adjustments in production of operations. Sometimes, certain changes under this method become very costly and impractical. On account of this drawback, this method is not suitable in the production of goods which are subject to quick style and design changes.
(b) Large investment: Under this method, machines are not arranged in accordance with functions as such similar type of machines and equipment is fixed at various lines of production. This leads to unavoidable machinery duplication resulting in idle capacity and large capital investment on the part of the entrepreneur.
(c) Higher overhead charges: Higher capital investment leads to higher overheads (fixed overheads) under this method. This leads to excessive financial burden.
(d) Interruption due to breakdown: If one machine in the sequence stops on account of breakdown, other machines cannot operate and work will be stopped. The work stoppage may also take place on account of irregular supply of material, poor production scheduling and employee absenteeism etc.
(e) Difficulties in expanding production: Production cannot be expanded beyond certain limits under this method.
(f) Lack of specialisation in supervision: Supervision of different production jobs becomes difficult under this method as there is absence of specialised supervision as the work is carried on in one line having different processes and not on the basis of different departments for different specialised jobs. Under this method a supervisor is supposed to have detailed knowledge of all the machines and processes which leads to absence of specialisation in the process of supervision.
(g) Under-utilisation of machines: As has already been pointed out, separate set of one type of machines is fixed at different lines of production. Usually, these machines are not
properly and fully utilised and there remains idle capacity in the form of under utilised equipment.
Process or Functional Layout
A process layout is one in which resources (such as equipment and people) which have similar processes or functions are grouped together. Process layouts are used when there is a large variety in the products or services being delivered and it may not be feasible to dedicate facilities to each individual product or service. A process layout allows the products or customers to move to each group of resources in turn, based on their individual requirements. Because of their flexibility process layouts are widely used. Examples of process layouts include supermarkets, hospitals, department stores and component manufacturers.
Advantages of Process Layout
(a) Maximum utilisation of machines: This method ensures fuller and effective utilisation of machines and consequently investment in equipment and machines becomes economical.
(b) Greater flexibility: Changes in the sequence of machines and operations can be made without much difficulty. This is because the machines are arranged in different departments in accordance with the nature of functions performed by them.
(c) Scope for expansion: Production can be increased by installing additional machines without much difficulty.
(d) Specialisation: As has already been pointed out that under this method, specialised machines are used for performing different production operations. This leads to specialisation.
(e) Effective utilisation of workers: Specialised workers are appointed to carry different type of work in different departments. This leads to effective and efficient use of their talent and capabilities.
(f) More effective supervision: As the machines are arranged on the basis of functions, performed by them, the specialised and effective supervision is ensured by the specialised knowledge of supervisors. Each supervisor can perform his task of supervision effectively as he has to supervise limited number machines operating in his department.
(g) Lesser work stoppages: Unlike the product method, if a machine fails, it does not lead to complete work stoppage and production schedules are not seriously affected. Due to breakdown in one machine, the work can be easily transferred to the other machines.
Disadvantages of Process Layout
(a) Coverage of more floor area: Under this method, more floor space is needed for the same quantum of work as compared to product layout.
(b) Higher cost of material handling: Material moves from one department to another under this method, leading to the higher cost of material handling. The mechanical devices of material handling cannot be conveniently employed under this method on account of functional division of work. Material has to be carried by applying other methods from one department to another, resulting into higher cost of material handling.
(c) Higher labour costs: As there is functional division of work, specialised workers are to be appointed in different departments for carrying specialised operations. The appointment of skilled worker leads to higher labour costs.
(d) Longer production time: Production takes longer time for completion under this method and this leads to higher inventories of work-in-progress.
(e) Difficulties in production, planning and control: Due to large variety of products and increased size of the plant, there are practical difficulties in bringing about proper coordination among various areas (departments) and processes of production. The process of production, planning and control becomes more complex and costly.
(f) Increased inspection costs: Under this type of layout more supervisors are needed and work is to be checked after every operation which makes the process of supervision costlier.
Hybrid Layout
A combination of process and product layouts combines the advantages of both types of layouts. A combination layout is possible where an item is being made in different types and sizes. Here machinery is arranged in a process layout but the process grouping is then arranged in a sequence to manufacture various types and sizes of products. It is to be noted that the sequence of operations remains same with the variety of products and sizes.
Flexibility is a very important factory, so layout should be such which can be molded according to the requirements of industry, without much investment. If the good features of all types of layouts are connected, a compromise solution can be obtained
which will be more economical and flexible.
Group or Cellular Layout
There is a trend now to bring an element of flexibility into manufacturing system as regards to variation in batch sizes and sequence of operations. A grouping of equipment for performing a sequence of operations on family of similar components or products has become all the important. The process of grouping the products or services to create a family is termed group technology.
Group Technology (GT) is the analysis and comparisons of items to group them into families with similar characteristics. GT can be used to develop a hybrid between pure process layout and pure flow line (product) layout. This technique is very useful for companies that produce variety of parts in small batches to enable them to take advantage and economics of flow line layout.
Group Technology has Three Aspects:
1. Grouping parts into families
Grouping parts or customers into families has the objective of reducing the changeover time between batches, allowing smaller batch sizes, and thus improving flexibility. Parts family formation is based on the idea of grouping parts or customers together according to factors such as processing similarity.
2. Group physical facilities into cells to reduce transportation time between processes
Physical facilities are grouped into cells with the intention of reducing material or customer movements. Whereas a process layout involves extensive movement of materials or customers between departments with common processes, a cell comprises all the facilities required to manufacture a family of components or delivery a service. Material and customer movement is therefore restricted to within the cell and throughput times are therefore reduced. Cells can be U- shaped to allow workers to work at more than one process whilst minimising movement.
3. Creating groups of multi-skilled workers
Creating groups of multi-skilled workers enables increased autonomy and flexibility on the part of operators. This enables easier changeovers from one part to another and increases the job enrichment of members of the group. This in turn can improve motivation and have a beneficial effect on quality.
Advantages of Group Technology Layout
1. Cost: Cellular manufacturing provides for faster processing time, less material handling, less work-in-process inventory, and reduced setup time, all of which reduce costs.
2. Flexibility: Cellular manufacturing allows for the production of small batches, which provides some degree of increased flexibility. This aspect is greatly enhanced with FMSs.
3. Motivation: Since workers are cross-trained to run every machine in the cell, boredom is less of a factor. Also, since workers are responsible for their cells' output, more autonomy and job ownership is present.
Limitations of Group Technology Layout
This type of layout may not be feasible for all situations. If the product mix is completely dissimilar, then we may not have meaningful cell formation.
Fixed Position Layout
This type of layout is the least important for today’s manufacturing industries. In this type of layout the major component remain in a fixed location, other materials, parts, tools, machinery, man power and other supporting equipment’s are brought to this location.
The major component or body of the product remain in a fixed position because it is too heavy or too big and as such it is economical and convenient to bring the necessary tools and equipment’s to work place along with the man power. This type of layout is used in the manufacture of boilers, hydraulic and steam turbines and ships etc.
Advantages of Fixed Position Layout
(a) Material movement is reduced
(b) Capital investment is minimized.
(c) The task is usually done by gang of operators, hence continuity of operations is ensured
(d) Production centers are independent of each other. Hence, effective planning and loading can be made. Thus total production cost will be reduced.
(e) It offers greater flexibility and allows change in product design, product mix and production volume.
Limitations of Fixed Position Layout
(a) Highly skilled man power is required
(b) Movement of machines equipment’s to productioncentre may be time consuming.
(c) Complicated fixtures may be required for positioning of jobs and tools. This may increase the cost of production.
Services Layout
The major factors considered for service providers, is an impact of location on sales and customer satisfaction. Customers usually look about how close a service facility is, particularly if the process requires considerable customer contact. Hence, service facility layouts should provide for easy entrance to these facilities from the freeways. Well-organized packing areas, easily accessible facilities, well designed walkways and parking areas are some of the requirements of service facility layout.
These service layouts follow conventional layouts as required. For example, for car service station, product layout is adopted, where the activities for servicing a car follows a sequence of operation irrespective of the type of car.
Assembly Line Balancing
Assembly-line balancing often has implications for layout. This would occur when, for balance purposes, workstation size or the number used would have to be physically modified. The most common assembly-line is a moving conveyor that passes a series of workstations in a uniform time interval called the workstation cycle time (which is also the time between successive units coming off the end of the line). The problem is complicated by the relationships among tasks imposed by product design and process technologies. This is called the precedence relationship, which specifies the order in which tasks must be performed in the assembly process.
Materials Handling
The material handling involves the movement of material form one section to another for the purpose of processing. They can be moved either manually or mechanically. For this purpose different types material handling equipment are used. The material handling system in any manufacturing setting plays an important role in the performance of the entire manufacturing system. Material handling can be defined as the art and science involving the movement, packing and storing of substances in any form.
Objectives of Material Handling
1. To reduce material handling cost
2. To reduce production life cycle
3. Better control of the flow of material
4. To ensure safety in the movement of goods
5. To avoid damage of the goods
General Principles of Material Handling
There are some guiding principles of material handling. These are:
1. Reduce unnecessary movement by selecting the shortest path to reach the destination.
2. Reduce congestion and bottlenecks by eliminating obstruction and congestions in the material handling.
3. Use scientific factory layout to minimize the overall material movement and reduce the number of trips. This will result in reduced transportation costs.
4. Use of standard material handling equipments to facilitate easy maintenance and availability of spares.
5. Minimize handling as it reduces the chances of breakage. It also reduces loading/unloading time and cost.
6. Use gravity to transport material, wherever possible.
7. Use mechanized material handling equipment to reduce dependence on human labour.
Materials Handling Equipments
The attempt in material handling is to use flexible equipments wherever possible and specialized equipment, only if necessary. The equipment should be simple and safe with operator safety as the prime objective. Listed below are a few material-handling devices and when they might be used.
1. Overhead Cranes and Hoists: Overhead cranes and hoists are used to move heavy objects through a plant. They are used for the movement of material in a fixed route and fixed area of operation. They come in a variety of sizes, and many are able to lift twenty-five tons or more. Moving steel slabs is an example of an overhead crane application. Overhead cranes are efficient at moving small parts only if the parts can be put together in a large batch and moved in one trip.
2. Conveyors: Conveyors are used to transport material from one fixed point to another fixed point. Some conveyors have belts that can move parts or granular material; others have a series of hooks that can move parts through a paint system. Some use gravity or a powered device to carry material. Some of the conveyor systems are portable which may be moved from time to time, but generally these are fixed. These are used for the following applications:
(a) Moving homogeneous material
(b) Fixed route of movement
(c) Constant rate of material movement
(d) Mass production units
3. Industrial Trucks: These are manual or external powered vehicles, which can move on a variety of paths. These are particularly useful for the following situations:
(a) Uneven (intermittent) supply of material
(b) Varying paths of movement
(c) Job-shop production units
4. Forklifts: Forklifts are used to move parts through varying paths. Because they have drivers, these vehicles are very flexible. Forklifts generally do not move large volumes of parts along the same path.
5. Automated Guided Vehicles (AGVs): AGV is a programmed vehicle, used to carry load from one location to another in an automated work place. They can be used to move parts through a variety of paths and are flexible in that they can be directed to follow more than one path. The most common type of such vehicles normally follows a predetermined path on floor embedded wires arranged to form closed loops. These vehicles are called as wire guided AGVs. Another variety is free-ranging AGVs, which offer more flexibility, as they need not move on a pre-specified path. An off-board controller is used to send despatcher commands for the identification of the load, destination of the load and, other instructions related to loading and unloading of the load.
6. Elevators and Lifts: These are used to raise or lower material in the vertical direction. They are just like lifts of a multi-storied building but carry material. Efficient planning and control of the material handling system can add to efficiency.
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