PRODUCTION PLANNING,
PLANT LOCATION,
LAYOUT PLANNING & CONCEPTS
PRODUCTION MANAGEMENT
COMPILED BY
ANUJ PRATAPCSJMU KANPUR
What is production planning?
“Production planning may be defined as the direction and co-ordination of the firms material & physical facilities towards the attainment of pre-specified production goals in the most efficient available way.”
Samuel Eilah
OBJECTIVES OF PRODUCTION PLANNING
Minimize production timeMinimize costsUse resources efficientlyCustomers satisfactionPlanning tools
PROCESS OF PRODUCTION PLANNINGDetermination of targets
Collection of information
Interpretation of information
Development of Actual Plans
Execution plan or Putting Plan into Operation
Follow up Action
Market Requirements Product Research
Operation Method
Work Flow Analysis
Product Specification
Process R & D Process Design
Final Product DesignProduct Idea
Operation Design
Work Station Relation
Operation Control
Product Development
PRODUCTION PLANNING SYSTEM
YELLOW SEQUENCERED FEEDBACK
1-PRODUCT PLANNING SYSTEM
2-PROCESS PLANNING SYSTEM
PLANT LOCATION
WHAT IS PLANT LOCATION?
Plant location refers to the choice of region and the selection of a particular sitefor setting up a business or factory.
PLANT LOCATION
SELECTION OF REGION
SELECTION OF SITE
SELECTION OF LOCALITY
SELECTION OF COMMUNITY
LOCATIONAL ANALYSIS
a) Demographic Analysisb) Trade Area Analysisc) Competitive Analysisd) Traffic analysise) Site economics
Comparative Costs of Alternative Locations A & B
Costs Site A (Rs.) Site B (Rs.)
Cost of establishments
Land & Buildings 350000 230000
Equipment 60000 60000
Transport Facilities 20000 30000
Cost of operations
Materials, freight and carriage
34000 24000
Taxes and insurance 10000 7500
Labour 100000 70000
Water, power and fuel 10000 8000
Total 584000 429500
OBJECTIVES OF LOCALISATION
1) Maximum utilization of resources2) Increase in specialized labour & its maximum
utilization3) Encouragement to planned development4) Increase in per capita income5) To make product competitive by reducing cost of
production following cost of product6) To attain maximum profits
LAYOUT PLANNING & CONCEPTS
WHAT IS PLANT LAYOUT?
Plant Layout may be defined as a technique of deciding locality, machines, processes and plant services within the factory so as to achieve the greatest possible output of high quality at the lowest possible cost of manufacturing.
PRINCIPLES OF PLANT LAYOUT
1. Principle of overall integration2. Principle of minimum distance3. Principle of flow4. Principle of cubic space5. Principle of satisfaction & safety6. Principle of flexibility7. Principle of maximum utilization8. Principle of availability of physical &
other Facilities
BLUEPRINT OF PLANT LAYOUT
Procedure of Plant Layout
1) Determination of objectives2) Collection of required data3) Analysis & co-ordination of available data4) Determination of Layout Planning5) Design of workshop & building6) Development of techniques7) Cost estimation & arrangement of
Finance8) Services of experts
Features of ideal plant layout
Proper arrangement of water, air, light, gas & electricityEffective direction, inspection & supervisionMaximum production capacityMinimum & continuous flow of materialGood quality productionImplementation of rules & specializationHealthy working conditionBest & cheap production at minimum cost of productionAdopt latest equipment machines & technology.
PLANT LAYOUT
PRODUCT LAYOUT
PROCESS LAYOUT MIX LAYOUT STATIONARY
LAYOUT
Product Layout
WORKING STATION-1
WORKING STATION-2
WORKING STATION-3
WORKING STATION-4
INPUT OUTPUT
It is used for mass production and standardized products
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Process Layout
DEPARTMENT DEPARTMENT
DEPARTMENT DEPARTMENT
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Mixed Layout
A combination of Process & Product layout is known as Mixed Layout.
Manufacturing concerns where several products are produced in repeated numbers with no likelihood of continuous production, Mixed layout is followed.
Stationary Layout
Raw material
Machines
Labour
Aircraft Assembly
Finished Goods
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