UNIT:3 PLANT LAYOUT AND MATERIAL HANDLING

INTRODUCTION: Plant layout refers to arrangement of machinery , equipments and other

facilities for the purpose of achieving quickest and smoothest production at least cost.

It includes planning and arranging manufacturing machinery, equipment and services for the
first time in completely new plant.

It signifies the arrangement of machines, work areas, material handling equipment’s,

transport, and storing of different materials, products, tools and fixtures etc. Proper plant
layout is one of the keys of success in factory management. The layouts for the same product
may be numerous, but which costs less in the long run is the best.

Definitions:

According to James Lundy, “Layout identically involves the allocation of space and the
arrangement of equipment in such a manner that overall operating costs are
minimized.”

Plant layout is a “technique of locating different machines and plant services within the
factory so that the greatest possible output of high quality at the lowest possible total
cost can be available”.

Objectives of Plant layout:

A properly planned plant layout aims at achieving the following objectives:

1. To achieve economies in handling of raw materials, work in- progress and finished goods.

2. To reduce the quantum of work-in-progress.

3. To have most effective and optimum utilisation of available floor space.

4. To minimise bottlenecks and obstacles in various production processes thereby avoiding

the accumulation of work at important points.

5. To introduce system of production control.

6. To ensure means of safety and provision of amenities to the workers.

7. To provide better quality products at lesser costs to the consumers.

8. To ensure loyalty of workers and improving their morale.

9. To minimise the possibility of accidents.

10. To provide for adequate storage and packing facilities.

11. To workout possibilities of future expansion of the plant.

12. Utilising existing space effectively

13. Minimizing delays and bottlenecks in the production system.

14. . Ensuring optimum utilization of men, materials, equipment and available space.

Process of Plant layout/Design:

Since decisions regarding layout design have considerable impact in the efficiency and
profitability of a firm it requires careful consideration. The following are the steps involved
in designing a layout:

1. Collection of required data: Data about the size of the plant, type of products to be
produced, method of production to be adopted, extent of space available, extent of
mechanization etc are to be collected.

2. Preparation of blueprint for the floor plan: Based on the data gathered, a blue print has
to be prepared for the floor plan. Care should be taken to ensure,that the layout provides for
unhindered movement of men and materials with minimum possible effort and time.

3. Preparation of process chart and flow diagram: The process chart and flow diagram
depicting the various activities to be performed and the linkages between them has to be
prepared.

4. Preparation of draft layout: A draft layout needs to be prepared clearly depicting the
positioning of men and materials and the process flow. The draft layout should be circulated
and discussions held with employees inviting suggestions for improvement. Flaws pointed
out need to be corrected and suggestions received incorporated after due discussions.

5. Test run: A test run is important to understand the efficiency of the layout in a real time
work environment. Problems not noticed in the earlier stages can occur at this stage. The
initial problems noticed need to be modified and test runs should be continued for at-least a
few times to ensure that the layout is able to facilitate maximum production at minimum cost.
FACTORS AFFECTING PLANT LAYOUT

1. Nature of the product: The nature of the product to be manufactured will significantly
affect the layout of the plant. Stationary layout will be most suitable for heavy products while
line layout will be best for the manufacture for the light products because small and light
products can be moved from one machine to another very easily and, therefore, more
attention can be paid to machine locations can be paid to machine locations and handling of
materials.

2. Volume of production: Volume of production and the standardization of the product also
affect the type of layout. If standardized commodities are to be manufactured on large scale,
line type of layout may be adopted.

3. Basic managerial policies and decisions: The type of layout depends very much on the
decisions and policies of the management to be followed in producing the commodity with
regard to the size of plant, kind and quality of the product, scope for expansion to be provided
for, the extent to which the plant is  to be integrated, amount of stocks to be carried at
anytime, the kind of employee facilities to be provided etc.

4. Nature of plant location: The size shape and topography of the site at which the plant is
located will naturally  affect the type of layout to be followed in view of the maximum
utilization of the space available .For e.g., if a site is near the railway line the arrangement of
general layout for receiving and shipping and for the best flow of production in and out the
plant may be made by the side of the railway lines .If space is narrow and the production
process is lengthy, the layout of plant may be arranged on the land surface in the following
manner:

5. Type of industry process: This is one of the most important factors influencing the choice
of type of plant layout. Generally the types of layout particularly the arrangement of
machines and work centers and the location of workmen vary according to the nature of the
industry to which the plant belongs. For the purpose of lay out, industry may be classified
into two broad categories: (i) Intermittent and (ii) continuous. Intermittent type of
industries is those, which manufacture different component or different machines.

Such industries may manufacture the parts, when required according to the market needs.
Examples of such industries are shipbuilding plants. In this type of industry functional layout
may be the best. The second type of industry in ‘continuous industry. in this type of industry
raw material are fed at one end and the finished goods are received at another end. A
continuous industry may either be analytical or synthetic .

7. Nature of machines: Nature of machines and equipment also affects the layout of plants.
If machines are heavy in weight or create noisy atmosphere, stationery layout may reasonably
be adopted. Heavy machines are generally fixed on the ground floor. Ample space should be
provided for complicated machines to avoid accidents.

8. Climate: Sometimes, temperature, illumination and air are the deciding factors in the
location of machines and their establishments. For example, in lantern manufacturing
industry, the spray-painting room is built along the factory wall to ensure the required
temperature control and air expulsion and the process of spray painting may be undertaken.
9.Nature of material: Design and specification of materials, quantity and quality of
materials and combination of materials are probably the most important factors to be
considered in planning a layout. So, materials storage, space, volume and weight of raw
materials, floor load capacity, ceiling height ,method of storing etc. should be given special
consideration. This will affect the space and the efficiency of the production process in the
plant. It will facilitate economic production of goods and prompt materials flow and soundly
conceived materials handling system.

10. Type of machine: Machines and equipment may be either general purpose or special
purpose. In addition certain tools are used. The requirements of each machine and equipment
are quite different in terms of their space; speed and material handling process and these
factors should be given proper consideration while choosing out a particular type of layout.
This should also be considered that each machine and equipment is used to its fullest capacity
because machines involve a huge investment. For instance, under product layout, certain
machines may not be  used to their full capacity so care should be taken to make full use  of
the capacity of the machines and equipment.

12.Human factor and working conditions: Men are  the most important factor of
production and therefore special consideration for their safety and comforts should be given
while planning a layout, specific safety items like obstruction-free floor, workers not exposed
to hazards, exit etc. should be provided for. The layout should also provide for the comforts
to the workers such as provision of rest rooms, drinking water and other services etc.
sufficient space is also to be provided for free movement of workers.

13. Characteristics of the building: Shape of building, covered and open area, number of
storeys, facilities of elevators, parking area  and so on also influence the layout plan. In most
of the cases where building is hired, layout is to be adjusted within the spaces available in the
building. Although minor modification may be done to suit the needs of the plants and
equipment. But if any building is to be constructed, proper care should be given to construct
it according to the layout plan drawn by experts. Special type of construction is needed to
accommodate huge or technical or complex or sophisticated machines and equipment.
 TYPES OF LAYOUT
1. PROCESS LAYOUT

The process layout is particularly useful where low volume of production is needed. If
the products are not standardized, the process layout is more low desirable, because it
has creator process flexibility than other. This layout is commonly suitable for non
repetitive jobs.

Process layouts are found primarily in job shops, or firms that produce customized,
low-volume products that may require different processing requirements and
sequences of operations. Process layouts are facility configurations in which
operations of a similar nature or function are grouped together. As such, they
occasionally are referred to as functional layouts. Their purpose is to process goods or
provide services that involve a variety of processing requirements. A manufacturing
example would be a machine shop. A machine shop generally has separate
departments where general-purpose machines are grouped together by function (e.g.,
milling, grinding, drilling, hydraulic presses, and lathes). Therefore, facilities that are
configured according to individual functions or processes have a process layout. This
type of layout gives the firm the flexibility needed to handle a variety of routes and
process requirements. Services that utilize process layouts include hospitals, banks,
auto repair, libraries, and universities.

Improving process layouts involves the minimization of transportation cost, distance, or time.
To accomplish this some firms use what is known as a Muther grid, where subjective
information is summarized on a grid displaying various combinations of department, work
group, or machine pairs. Each combination (pair), represented by an intersection on the grid,
is assigned a letter indicating the importance of the closeness of the two (A = absolutely
necessary; E = very important; I = important; O = ordinary importance; U = unimportant; X =
undesirable). Importance generally is based on the shared use of facilities, equipment,
workers or records, work flow, communication requirements, or safety requirements. The
departments and other elements are then assigned to clusters in order of importance.

ADVANTAGES OF PROCESS LAYOUT INCLUDES:

(i) There will be less duplication of machines. Thus, total investment in equipment purchase

will be reduced.

(ii) It offers better and more efficient supervision through specialization at various levels.

(iii) There is a greater flexibility in equipment and man power thus load distribution is easily

controlled.

(iv) Better utilization of equipment available is possible.

(v) Break down of equipment can be easily handled by transferring work to another

machine/work station.

(vi) There will be better control of complicated or precision processes, especially where much

inspection is required.

Disadvantages of process layouts include:

(i) There are long material flow lines and hence the expensive handling is required.

(ii) Total production cycle time is more owing to long distances and waiting at various points.

(iii) Since more work is in queue and waiting for further operation hence bottle necks occur.

(iv) Generally, more floor area is required.

(v) Since work does not flow through definite lines, counting and scheduling is more tedious.
(vi) Specialization creates monotony and there will be difficult for the laid workers to find

job in other industries.

2. Product or Line Layout:

If all the processing equipment and machines are arranged according to the sequence of

operations of the product, the layout is called product type of layout. In this type of layout,

only one product of one type of products is produced in an operating area. This product must

be standardized and produced in large quantities in order to justify the product layout.

The raw material is supplied at one end of the line and goes from one operation to the
next quite rapidly with a minimum work in process, storage and material handling.

Advantages offered by Product Layout:

(i) Lowers total material handling cost.

(ii) There is less work in processes.

(iii) Better utilization of men and machines,

(iv) Less floor area is occupied by material in transit and for temporary storages.

(v) Greater simplicity of production control.

(vi) Total production time is also minimized.

Limitations of Product Layout:

(i) No flexibility which is generally required is obtained in this layout.

(ii) The manufacturing cost increases with a fall in volume of production.

(iii) If one or two lines are running light, there is a considerable machine idleness.

(iv) A single machine break down may shut down the whole production line.

(v) Specialized and strict supervision is essential.

3. FIXED LAYOUT

In this type of layout, the product is kept at a fixed position and all other material;
components, tools, machines, workers, etc. are brought and arranged around it. Then
assembly or fabrication is carried out. The layout of the fixed material location department
involves the sequencing and placement of workstations around the material or product. It is
used in aircraft assembly, shipbuilding, manufacture of boilers, turbines and ship and most
construction projects. A fixed-position layout is appropriate for a product that is too large or
too heavy to move. For example, battleships are not produced on an assembly line. For
services, other reasons may dictate the fixed position (e.g., a hospital operating room where
doctors, nurses, and medical equipment are brought to the patient).

The major component or body of the product remain in a fixed position because it is too
heavy or too big and as such it is economical and convenient to bring the necessary tools and
equipment’s to work place along with the man power.
Advantages Offered by Fixed Position Layout:

(i) Material movement is reduced

(ii) Capital investment is minimized.

(iii) The task is usually done by gang of operators, hence continuity of operations is ensured

(iv) Production centers are independent of each other. Hence, effective planning and loading

can be made.

(v) It offers greater flexibility and allows change in product design, product mix and

production volume.

Limitations of Fixed Position Layout:

(i) Highly skilled man power is required.

(ii) Movement of machines equipment’s to production centre may be time consuming.

(iii) Complicated fixtures may be required for positioning of jobs and tools. This may

increase the cost of production.

 DIFFERENCE
POINTS PROCESS LAYOUT PRODUCT LAYOUT
Nature of Product Process or functional layout is product or line layout is

more suitable for non- suitable for standardized

standardized products. product.

Preliminary In process layout, Higher initial amount for
Investment comparatively, lower initial
investment is sufficient. investment in machines

and equipment is required

in product or line type of

layout
Volume of Process layout is used for a But product or line layout
Production is preferred where
large number of products where production of each product
is done on a large scale
similar machines and basis.

equipment are used for the

manufacture of each product, so

the volume per product is low.

Flexibility Process layout is flexible In product design are quite
impossible in machines
because necessary alteration or and operations. Under
product , if product design
change in sequence of is changed, the layout
becomes quite obsolete.
operations can easily be made

as and when required without

upsetting the existing layout

plan
Floor Spaces Process layout requires Product layout requires

comparatively more space for less space for the

carrying out the production arrangement of machines

and equipment.
Manufacturing Time Process layout takes Manufacturing time is less

comparatively more time in product layout because

because materials are moved the raw materials are fed

from one machine or into the machines at one

department to another by hand. end, the finished product

comes out at another end.

Supervision Process layout needs frequent The supervision is easy in

and continuous supervision, but product layout but as it

due to functional specialization, requires specific type of

the cost of supervision is less. supervision, the cost of

supervision increases.
Control and co- Under process or functional Production control is very

ordination layout, production control is simple in product layout so

rather difficult because a part it necessitates less efforts

has to be routed through a for coordination. 

number of departments located

at different places. Therefore,

much effort is needed to

coordinate the functions of

various departments.

4. COMBINATION LAYOUT / HYBRID LAYOUT

A combination of process and product layouts combines the advantages of both
types of layouts. A combination layout is possible where an item is being made in
different types and sizes. Here machinery is arranged in a process layout but the
 process grouping is then arranged in a sequence to manufacture various types and
sizes of products. It is to be noted that the sequence of operations remains same
with the variety of products and sizes. For Eg: Hospital- process and fixed position,
Super market layout – process and fixed combination

5. CELLULAR LAYOUT:

This type of layout is based on the grouping of parts to form product / part families.
Similar parts may be grouped into families based on common processing sequences,
shapes, tooling requirements, and so on. The processing equipment required for a
particular product family are grouped together and placed in a manufacturing cell. The
cells become, in effect, miniature versions of product layouts. The cells may have
movements of parts between machines via conveyors or have a flow line connected by
a conveyor. This type of layout is used when various products have to be produced in
medium to large quantities.

 Cost. Cellular manufacturing provides for faster processing time, less material handling, less work-
in-process inventory, and reduced setup time, all of which reduce costs.

 Flexibility. Cellular manufacturing allows for the production of small batches, which provides some
degree of increased flexibility. This aspect is greatly enhanced with FMSs.
Motivation. Since workers are cross-trained to run every machine in the cell, boredom is
less of a factor. Also, since workers are responsible for their cells' output,
more autonomy and job ownership is present.

TECHNIQUE OF PLANT LAYOUT DESIGN:

(a)Process chart:

It is a graph containing details regarding various activities and operations taking place in the

organisation from start to the last stage of the work.

(b) Process flow diagram:

This is an aid to process chart. This relates to details regarding position of machines, area
covered by each machine, internal transportation and other operations pertaining to
production. This model diagram is prepared on the paper.

(c) Templates:

The area covered by a machine is cut to scale from a thick paper to form a template. Not only

machines but space covered by furniture, equipment and other components can also form a

template. These can be well arranged representing the actual plan of layout to be undertaken.

(d) Models:

Three dimensional wooden models of machinery, equipment and other devices and

components can be prepared. By seeing these models even a layman can form an idea about

the layout of the plant. But this technique is very costly and only big concern can afford to

install such a measure.

(e) Drawings:

Layout drawings can be got prepared by drafts men showing walls, stairways, machines and

equipment etc.

(f) Machine data card:

These cards are tied with different machines operating in the plant. These obtain valuable

information regarding various salient features or characteristics of machines viz., efficiency,

capacity space area covered by the machine and technique of operating the machine etc.