Plant Layouts

1. Plant Layouts Prepared by Bhakti Joshi June 27, 2014

2. Class Activity • Steel • Iraq • Indian Railways • US Economy • India’s Trade • NHAI Bonds • Excise Duty • Natural Gas • Stock markets • Defense Industry • Water Transport • Agricultural Prices • Banking • Coal • Mutual Funds • Airlines • Employment • Consumer appliances • Anti-dumping duties • Cement • Telecommunication • Maharashtra Government • Non-Government Organizations • Mobile Phones • Premium Goods

3. Class Activity Review • 9 Teams • Constraints: 1 copy of 5 Newspapers; (Time is given) • 3 Teams hoarded on 1 Newspaper – Not Optimal • Couple of Teams had 1 resource writing maximum articles – Not optimal (No teamwork) • Many teams took photographs of articles, shared and collaborated newspapers with each other – • Some teams had members not writing but allocating resources • Proof-reading/editing as a critical process was missing in all teams (though many teams cross-checked for repetition of content)

4. Examples • Chemist shop • Tailor Shop • Kiraana • Restaurant • College • Grocery store in a mall • Movie Theatres

5. Organisation’s context… There are plant layouts “…floor plan for determining arranging the desired machinery and equipment of a plant to permit the quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of the raw materials to the shipment of the finished products.”

6. Why Layouts? • Efficiency in use of workers and space • Minimisation of material handling costs • Elimination of unnecessary movements of workers and materials • Minimisation of production and customer time • Elimination in delays • Safety and improved working conditions • Attainment of product/service quality

7. Types of Plant Layouts PROCESS PRODUCT FIXED POSITION CELLULAR COMBINATION

8. Process Layout: Example 1 Sewing Stitching Embroidery Output

9. Process Layout: Example 2 (Metal) # * * Lathe is a machine in which work is rotated about a horizontal axis and shaped by a fixed tool # Milling machine creates corrugated edges like in a coin Source: Google Images, Transtutors.com

10. Process Layout • Also known as functional layout • Evolved from handicraft production • Grouping the same kinds of machines in one department

11. Process Layout – Key Principles • Minimum distance between departments • Departments in a sequence of operations • Convenience for inspection and supervision

12. Advantages • Disadvantages Process Layout: Advantages and Disadvantages • Flexibility • Utilisation • Cost • Excess material handling • System Protection • Difficulties in operations control • Economies of Scale • Incentives for Workers Is this layout meant for bulk orders or small orders?

13. Product Layout: Example Making a boat …? How was it made…? What were it’s input…? Could be taught…? Could it be replicated …?

14. Product Layout • Also known as straight- line layout • Sequence of workstations interconnected in one line • Work done in small amounts

15. Product Layout – Key Principles • Specific volume to be manufactured/serviced • Stable product demand • Product Standardisation • Continuous material supply

16. Advantages • Disadvantages Product Layout: Advantages and Disadvantages • Simplicity • Dull and repetitive • Small Space • Product variety is limited • Optimum cost of materials • Fault in one can affect all • High capital investments • Inelastic capacities • Time efficiency • Limited skill sets Is this layout cost-effective?

17. Fixed Position Layout: Example • Paper boat versus the real one? • Operations in hospitals? • Manufacturing a plane

18. Fixed Position Layout: Example (Contd…)

19. Fixed Position Layout • Job done at a fixed position • The main equipment/s, heavy materials, sub-assemblies, etc., remain fixed • Completion done by movement of machines, workers and tools

20. Advantages • Disadvantages Fixed Position Layout: Advantages and Disadvantages • Easy for immobile products • High capital investments • Flexibility • Large storage spaces • Possibly cost-effective • Careful planning • Feasible for large projects Can such layouts be discouraged completely?

21. Cellular Layout: Example 1 Source: http://www.teiminc.com/product_flow.htm

22. Cellular Layout: Example 2 Source: http://www.thefullwiki.org/Cellular_manufacturing

23. Cellular Layout • Also known as functional layout • Suitable for large variety of products in small volumes • Based on Group Technology (GT) principle • Parts with similar product design characteristics • Parts with similar process characteristics

24. Advantages • Disadvantages Cellular Layout: Advantages and Disadvantages • Flexibility • Requirement of skills • Small batches of production • Possibility of imbalances • Higher machine utilisation • Disadvantages of process and product layouts • Workers’ empowerment • Low cost of production What kind of businesses will require cellular layouts?

25. Combination Layout • Hybrid Layout • Mixture of three main layouts

26. Projects • Identify your own business’ product/service • Determine the possible inputs • Determine the possible layout for this business intuitively • Find a real-life business providing your product/service • Determine their inputs, layouts, processes involved (in real-life) to provide their product • Compare your imaginary and real business of the same product/service • Document it into a report • Present in your findings as a presentation • Report and presentation should be submitted in a CD with your team members names and roll numbers. • NO hard copies will be accepted • Hard copy of the presentation’s agenda/TOC MUST be given

27. Email: bhaktij@gmail.comWebsite: www.headscratchingnotes.net