What are the objectives, principles and types of Plant Layout?

Posted in Operations Management | Email This Post Plant layout is a mechanism which involves knowledge of the space requirements for the facilities and also involves their proper arrangement so that continuous and steady movement of the production cycle takes place. Moore, a very well known name in the business world, explained plant layout as, The plan of or the act of planning, an optimum arrangement of facilities, including personnel, operating equipment, storage space, materials handling equipment and all other supporting services along with the design of the best structure to accommodate these facilities. The problems related to plant layout are generally observed because of the various developments that occur. These developments generally include adoption of the new standards of safety, changes in the design of the product, decision to set up a new plant, introducing a new product, withdrawing the various obsolete facilities etc. Objectives of a good plant layout are 1. Providing comfort to the workers and catering to workers taste and liking. 2. Giving good and improved working conditions. 3. Minimizing delays in production and making efficient use of the space that is available. 4. Having better control over the production cycle by having greater flexibility for changes in the design of the product. Principles of a good plant layout are 1. A good plant layout is the one which is able to integrate its workmen, materials, machines in the best possible way. 2. A good plant layout is the one which sees very little or minimum possible movement of the materials during the operations. 3. A good layout is the one that is able to make effective and proper use of the space that is available for use. 4. A good layout is the one which involves unidirectional flow of the materials during operations without involving any back tracking. 5. A good plant layout is the one which ensures proper security with maximum flexibility.

6. Maximum visibility, minimum handling and maximum accessibility, all form other important features of a good plant layout. Types of layouts 1. Process layout These layouts are also called the functional layouts and are very suitable in the conditions, when the products being prepared are non standard or involve wide variations in times of processing of the individual operations. Such layouts are able to make better utilization of the equipment that is available, with greater flexibility in allocation of work to the equipment and also to the workers. Imbalance caused in one section is not allowed to affect the working of the other sections. 2. Product layout These layouts are also known as the line layouts or the layout by sequence. In such layouts, the manufacturing cycle is small with minimum material handling. The space required is small and quality control is easy to exercise. 3. Project layout Such layouts are also referred to as the fixed position layouts. In these layouts, the components, heavy materials, sub assemblies all remain fixed at one place and the job is completed by movement of machines, men and tools to the location of the operations.

What are the factors affecting plant location decisions and the need for such decisions
Posted in Operations Management | Email This Post Units concerning both manufacturing as well as the assembling of the products are on a very large scale affected by the decisions involving the location of the plant. Location of the plant itself becomes a very important factor concerning service facilities, as the plant location decisions are strategic and long-term in nature. Plant location decisions need detailed analysis because: 1. Wrong plant location generally affects cost parameters i.e. poor location can act as a continuous stimulus of higher cost. Marketing, transportation, quality, customer satisfaction are some of the other factors which are greatly influenced by the plant location decisions hence these decisions require in-depth analysis.

2. Once a plant is set up at a location which is not much suitable, it is a very disturbing as well as very expensive process to shift works of a company to some other place, as it would largely affect the cycle of production. 3. The investments involved in the in setting up of the plant premises .buying of the land etc are very large and especially in the case of big multinational companies, the investments can go into millions of rupees, so economic factors of the location should be very minutely and carefully checked and discussed in order to achieve good returns on the money which has been invested. The Need for location decisions These decisions are needed when a new plant is to be set up or when the operations involved in the company at the present location need to be expanded but expansion becomes difficult because of the poor selection of the site for such operations. These decisions are sometimes taken because of the social or the political conditions engulfing the working of a company. The way the works of a company have to be performed, largely depends upon the industrial policies issued by the government. Any change that creeps in the industrial policy of the government which favors decentralization and hence does not permit any change or any expansion of the existing plant requires strictly evaluated location decisions. Factors governing plant location: 1. Regional factors: These factors include proximity of the plant to the market and also to the sources of the raw materials. They also include infrastructural facilities, transportation facilities, and availability of skilled workers, legislation, the taxation and also the work attitude of the workers. Robinson was the one who has very clearly and efficiently justified industrial location concerns using pure materials nearer to the markets or the consumption centers. According to Robinson, the place of production is likely to be at the place of consumption where the final product is more expensive to carry because it is more bulky, more fragile or more perishable than is raw materials. 2. Community factors: These involve accommodation, education, entertainment and transport facilities. It also includes attitude of the community, supporting industries and services, suitability of the land etc.

Examples of plant location ( India) Most of the textile mills are found in or near Mumbai and Ahmedabad because of the humidity conditions that prevail there. Sites for nuclear power plants to be located in different parts of the country largely depend upon environmental, safety, socio-economic and also the engineering factors affecting the construction and operation of such plants. Steel plants are generally located near the Jharkhand, Bengal, Chhattisgarh and Orissa regions. This choice of site is mainly because of more economical transport of the finished goods as compared to basic raw materials. Similar case is observed in the plants which manufacture cement; such plants are located near the lime and the coal deposits. Namroop and Thal Vaishet, both act as very important sites for the gas-based fertilizer plants. Coal based fertilizer plants at Ramagundum are located near the source of raw materials (coal). Naptha / oil based fertilizer plants at Mangalore, Madras, Cochin have been located near ports, which act as a great source for the import of the raw materials. Proximity to market forms a major factor which affects plant location decisions in case of machine tool industries. In case of such industries, sites are scattered over different parts of the country such as Ludhiana, Pune, Bangalore, Calcutta, Mumbai etc. Information Technology/BPO/Software Industries depend largely on availability of skilled personnel, infrastructure etc Because of these reasons most of such organizations operate in urban areas such as Delhi, Chennai, Hyderabad, Bangalore, Pune etc.