PLANT LAYOUT

Sub: Operations Management

Prof Nitin Kubde

INTRODUCTION
The step forward, in the sequence, after location and site decision.

“The floor plan, indicating the location of the various work centres,
plant, associated offices and supporting facilities.”

Hence,
The judicious selection of the location of the plants and machines
should be in such a way, as to facilitate uninterrupted and quick
movements of input material through pre- pre-determined cycle of
operations, till they are transformed as outputs, in the form of products
and services, with minimum material handling and management, with
maximum efficiency and quality of operation leading to minimum
overall cost of the entire process/ operations.
IMPORTANCE OF LAYOUT

Facilitates: Manufacturing process.

Facilitates quick movements by reduction of
transportation & waiting time

Minimises material movement & handling.

Efficient utilisation of resources:
Men, Materials, Machines.

Achieves efficiency by effective planning.

Improves quality of operations by proper selection of
plant, machinery, operations & sequencing.
 Factors Affecting the
Plant Layout Decision
1. Types of Production
2. Production System
3. Scale of Production
4. Type of machines
5. Type of Building Facilities
6. Availability of Total Floor Area
7. Possibility of Future Expansion
8. Arrangement of Material Handling Equipment
Material Flow System

Manufacturing Process includes three basic inputs :

1. Men
2. Machines
3. Materials

Flow of Material :
Product Layout - Short & Smooth
Process Layout - Long & Complex
Material Flow System
Material Flow System is divided in two parts :
1. Horizontal Flow System
2. Vertical Flow System
Horizontal Flow System

The Horizontal Flow Systems are devised in the

single story building when the flat floor area is
available.

In this system, the starting point is the receiving
(R) of raw material and the terminal point is
shipment (S) of finished goods.

In between these two points, the materials move
from one work station to another for the
processing.
 Horizontal Flow System
Is denoted by the alphabetic letters :
1. “I” type Flow :-

Shortest route .

Must have roads on
both side.

Plant area has long lengths But short width.

Difficulty in returning empty containers.

Absence of rushing of outside transportation.

Unsuitable for longer production line.
Horizontal Flow System

Is denoted by the alphabetic letters

2. “L” type Flow :-
Horizontal Flow System

3. “U” type Flow :-

One side road link will
be required.

Less difficulty in returning the empty containers.

Possibility of rushing of outside transportation.

Suitable for longer production line.

Requires square like floor area.
Horizontal Flow System

4. “S” or inverted “S” type of Flow :-

Requires roads on both
side.

Absence of rushing of
outside transportation.

Requires square like floor area.

Difficulty in returning empty containers.

Suitable for longer production lines.
Horizontal Flow System
5. “O” type Flow :-

One side road facility
is required.

Heavy rush of outside
transportation.

Easy in returning empty containers.

Requires square like floor area.

Suitable for longer production line.
Horizontal Flow System
6. “I” and “U” type Flow :-
Horizontal Flow System
7. “I” and “S” type Flow :-
Horizontal Flow System
8. “I” and “O” type Flow :-
Vertical Flow System

The vertical Flow System arises in case of multi story
buildings.

Multi storey building are used where limited land area is
available and the processing is done on light materials
with the help of light machines.
Vertical Flow System

Important Vertical Flow Systems :-
TYPES OF PLANT LAYOUTS
1. Product or Line layout

2. Process or Functional layout

3. Fixed Position or Project layout

4. Combination layout (Mixed layout)

1. PRODUCT OR LINE LAYOUT
ADVANTAGES OF PRODUCT LAYOUT
1. Low cost material handling
2. Smooth and uninterrupted operations
3. Continuous flow of work
4. Optimum use of floor space
5. Shorter processing time
6. Simple and effective inspection of work
DISADVANTAGES:
PRODUCT LAYOUT
1. High initial capital investment
2. Heavy overhead charges
3. Lesser flexibility
 2.PROCESS LAYOUT

Product A :

Product B :
ADVANTAGES OF PROCESS
LAYOUT
1. Lower initial capital investment
2. The overhead cost are relatively low
3. Supervision can be more effective and specialised
4. Greater flexibility
DISADVANTAGES OF PROCESS
LAYOUT
1. Material handling costs are high due to backtracking
2. More skilled labour is required
3. More frequent inspection is needed
COMPARISON BETWEEN PRODUCT
AND PROCESS LAYOUT
PRODUCT LAYOUT
1. Investment is high
2. Space requirement is more
3. Manufacturing time
required is more
4. Material handling is
maximum
5. Flexibility is high
PROCESS LAYOUT
1. Investment is less
2. Space requirement is less
3. Manufacturing time required
is less
4. Material handling is minimum
5. Flexibility is less
COMPARISON BETWEEN PRODUCT
AND PROCESS LAYOUT
PRODUCT LAYOUT
6. Inspection is required
7. Less skilled labours are
required
8. Supervision is required
PROCESS LAYOUT
6.Inspection is not required at
every stage
7. More skilled labours are
required
8. Supervision is not required
3.FIXED POSITION OR PROJECT
LAYOUT
MANUFACTURING OF SHIP
ADVANTAGES OF FIXED
POSITION LAYOUT
1. It saves time and cost involved on the movement of
work from one work station to another
2. The layout is flexible as change in job design and
operation sequence can be easily incorporated
3. It is more economical when several orders in
different stages of progress are being executed
simultaneously
DISADVANTAGES OF FIXED
POSITION LAYOUT
1. Production period being very long, capital investment
is very heavy
2. Very large space is required for storage of material
and equipment near the product
 4. COMBINATION LAYOUT
A Lathe Milling
painting

Drilling Grinding
B
Press Boring
inspection
C

Shaping Milling
D
packaging

Cellular layout

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dairyvideo3
STUDY: DAIRY INDUSTRY

A dairy is a facility for the extraction and
processing of animal milk -- mostly from cows,
sometimes from buffalo, sheep, horses or goats -
- for human consumption

Cream and butter

Skim milk

Cheese

Whey

Yogurt

Milk powders

Other milk products