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Facility planning
Location planningLay out planning
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Manufacturing companies & Design centers all over the world
are vying with each other to set up their plants in India & more
so in BangaloreCompanies in Service sector also have jumped into the
bandwagon
The reason .
The main considerations are
Business opportunities &
Cost of operations
Fixed costs Land, Buildings, Equipment
Location Taxes etc.
Variable costsWages, Power & Water, Transport,
Materials etc.
Plant Location
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Plant location-Points for consideration
Nearness to source of Raw material & components
Nearness to Potential marketAvailability of power & water
Availability of Labor (unskilled, skilled & knowledge worker)
Transport & Communication facility
Integration with other group companies
Industrial policy of Governmenta) Providing infrastructure
b) Investment subsidy
c) Tax Concessions
d) Concessional Finance
Climate (General & political)Recreation Facilities
Educational Facilities
When all these are favorable what matters is total cost of operation
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Worked out example
Data A B C
Labor cost/unit 0.75 1.1 0.8
Plant construction cost 46L 39L 40L
Mat cost/unit 0.43 0.60 0.40
Power charges/year 30000 26000 30000
Water charges/year 7000 6000 7000
Transportation cost/unit 0.02 0.10 0.10
Taxes/year 33000 28000 63000
Determine the most suitable location. All figures are in Rs.
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LAY OUT PLANNING
LAY OUT is the physical arrangement of various
departments with in the organization and location ofequipment & other facility with in the department
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A good Lay out should ensure
Smooth flow / Minimum Travel
Maximum FlexibilityMaximum use of volume
Maximum visibility
Maximum Accessibility
Maximum Security & Safety
Minimum Handling
Minimum Discomfort
Good Appearance
FEATURES / REQUIREMENTS / OJECTIVES
OF A GOOD LAYOUT
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Types of lay out
Line type lay out (Product Layout)
Functional lay out (Process Lay out)
Fixed position lay out
Cellular lay out ( Group Technology )
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PRODUCT LAYOUT PROCESS LAYOUT
Facilities arranged in a line Similar facilities grouped together
Line flow of product Zigzag flow of product
For volume/Single product For variety/Multi product
Mechanized Handling is easy Mechanized handling is difficult
High initial investment Low investmentLess skilled labour More skilled labour
Smooth flow Interrupted flow
Suitable for Suitable for
Made to stock situation Made to order Situation
Less WIP WIP- moreBreak down of Not so serious
machinesserious
FlexibilityLess Flexibility - More
COMPARISION
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Materials
Equipment
Workforce
Product
Aircraft Assembly
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Fixed Position LayoutExample from Thermax
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L LMD G
Product LayoutAn example
L MD G
L LD G
Product C
Product A
Product B
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Process LayoutAn example
L L L L
M M
M M
D D
D D
D D
G G G
L L L L
Product A
Product C
Product B
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Design of Process LayoutsAlternatives
Qualitative Method ( for services )Closeness required between a pair of functions
Quantitative Method ( for production )Uses quantitative measures for assessing the impact of a
layout design
Load distance analysis method
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Department 1
Department 2
Department 3
Department 4
Department 5
Department 6
O
U
A
U
O
A
O
U
O
I
X
O
E
U
A
Value Closeness
A Absolutely necessary
E Especially Important
I Important
O Ordinary closeness OK
U Unimportant
X Undesirable
Nearness Diagram (Example)
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DOCTORS REST ROOMS
PHYSIOTHERAPY
X-RAY
LAB
CANTEEN
ORTHOPAEDICS
OBSTETRICS & GYNAECOLOGY
CASUALTY
MORTUARY
PHARMACY
Nearness Diagram (for a Hospital Block)
A Absolutely necessary
E Essential
I Important
O OK
U UndesirableNURSES REST ROOMS
U
U
U
U
U
U
U
U
U
A
A
WARDSA
A
A
A
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Group Technology LayoutAn example
L
L
L
L
MM
M
M
D D
D D
D
D
G G
G
L
L
L
L
Cell 1
Shafts
Cell 3
Pinion gears
Cell 2
Gears
Cell 4
Bearings
M
DL
L D
LM
L
D
Cell 7
PanelsCell 6
Castings &
Forgings
Cell 5
Bolts & Nuts
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Shafts
Cell 1
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Gears
Cell 2
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Pinion gears
Cell 3
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Bearings
Cell 4
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Bolts & Nuts
Cell 5
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Castings & Forgings
Cell 6
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Panels
Cell 7