Unit: 6 Plant Location and Plant Layout
Unit: 6 Plant Location and Plant Layout
Syllabus
- 6.1 Plant Location: Factors affecting Site Selection
- 6.2 Plant Layout: Objectives & principles of good plant lay out,
- 6.3 Types of plant lay out based on types of production: Job production, Batch Production, Mass production, Productivity and types.
- 6.4 Material handling – Need and Types of material handling devices.
6.1 Plant Location: Factors affecting Site Selection
Plant Location
Plant location refers to the choice of the region where men, materials, money, machinery are brought together for setting up a plant or business or factory. Identifying an ideal location is very crucial, it should always maximize the net advantage, must minimize the unit cost of production and distribution. Plant location decisions are very important because once the plant is located at a particular site then the organization has to face the pros and cons of that initial decision.
Factors affecting Plant Location
Primary factors
1. Availability of raw materials:
Availability of raw materials is the most important factor in plant location decisions because, the manufacturing facility is the place where the raw materials are converted into finished goods, so the plant should be located in a place where the raw materials availability is maximum and cheap.
2. Nearness to the market:
Nearness of market for the finished goods reduces the transportation costs and can render quick services to the customers. If the plant is located far away from the market then the chances of spoiling and breakage become high during transport.
3. Availability of labour:
Another most important factor which influences the plant location decisions is the availability of labor. The combination of the adequate number of workers with suitable skills and reasonable labor wages can highly benefit the firm.
4. Transport facilities:
Transport facilities are very important to bring the raw materials to the firm and carrying the finished goods to the market. Depending on the size of the finished goods or raw materials a suitable transportation is necessary such as roads, water, rail, and air. The transportation costs must be kept low.
5. Availability of fuel and power:
Unavailability of fuel and power is the major drawback in selecting a location for firms. Fuel and power are necessary for all most all the manufacturing units, so locating firms nearer to the coal beds and power industries can highly reduce the wastage of efforts, money and time due to the unavailability of fuel and power.
6. Availability of water:
Depending on the nature of the plant firms should give importance to the locations where water is available. For example, power plants where use water to produce power should be located near the water bodies.
Secondary factors
1. Suitability of climate:
Climate is really an influencing factor for industries such as agriculture, leather, and textile, etc. For such industries extreme humid or dry conditions are not suitable for plant location. Climate can affect the labor efficiency and productivity.
2. Government policies:
While selecting a location for the plant, it is very important to know the local Government policies such as licensing policies, institutional finance, Government subsidies, Government benefits associated with establishing a unit in the urban areas or rural areas, etc.
3. Competition between states:
In order to attract the investment and large-scale industries various states offer subsidies, benefits, and sales tax exemptions to the new units. However, the incentives may not be big but it can favour the firms during its startup stages.
4. Availability of basic facilities:
Availability of basic facilities such as schools, hospitals, housing and recreation clubs, etc. can motivate the workers to stick to the jobs. On the other hand, these facilities must be provided by the organization, but here most of the employees give preference to work in the locations where all these benefits/facilities are available outside also. So, while selecting plant location, organizations must give preference to the location where it is suitable for providing other facilities also.
5. Disposal of waste:
Disposal of waste is a major problem particularly for industries such as chemical, sugar, and leather, etc. So that the selected plant location should have provision for the disposal of waste.
6.2 Plant Layout: Objectives & principles of good plant lay out
Plant Layout
Plant layout is a plan for effective utilization of facilities for the manufacturing products, which involves a most efficient and economical arrangement of machines, materials, human resource, storage space and all supporting services, within available floor space.
Objectives of Plant Layout
- (i) Easy flow of materials through the plant
- (ii) Minimise material handling
- (iii) Facilitate manufacturing progress by maintaining balance in the processes
- (iv) Maintain flexibility of arrangements and of operation
- (v) Effective utilization of men, equipment and space
- (vi) Minimise interference (i.e. interruption) from machines
- (vii) Reduce hazards affecting employees
Principles of Plant Layout
- (i) Minimum Movement: Materials and labour should be moved over minimum distances; saving cost and time of transportation and material handling.
- (ii) Space Utilization: All available space should be effectively utilized – both horizontally and vertically.
- (iii) Flexibility: Layout should be flexible enough to be adaptable to changes required by expansion or technological development.
- (iv) Interdependence: Interdependent operations and processes should be located in close proximity to each other; to minimize product travel.
- (v) Overall Integration: All the plant facilities and services should be fully integrated into a single operating unit; to minimize cost of production.
- (vi) Safety: There should be in-built provision in the design of layout, to provide for comfort and safety of workers.
- (vii) Smooth Flow: The layout should be so designed as to reduce work bottlenecks and facilitate uninterrupted flow of work throughout the plant.
- (viii) Economy: The layout should aim at effecting economy in terms of investment in fixed assets.
- (ix) Supervision: A good layout should facilitate effective supervision over workers.
- (x) Satisfaction: A good layout should boost up employee morale, by providing them with maximum work satisfaction.
6.3 Types of plant lay out based on types of production: Job production, Batch Production, Mass production, Productivity and types.
Types of Plant Layout
- (a) Product / Line Layout
- (b) Process / Functional Layout
- (c) Fixed Position Layout
- (d) Combination Layout
a) Product / Line Layout
In product or line layout, all the machines are arranged in the sequence, as required to produce a specific product. It is called line layout because machines are arranged in a straight line. The raw materials are fed at one end and taken out as finished product to the other end.
Product layout is suitable in the following cases:
- Where one or a smaller number of standardized products are manufactured.
- Where a large volume of production of each item has to travel the production process, over a considerable period of time.
- Where a possibility of a good balance of labour and equipment exists.
- Where minimum of inspection is required, during sequence of operations.
- Where minimum setup is required.
b) Process / Functional Layout
In process or functional layout, all machines performing similar type of operations are grouped at one location i.e. all lathes, milling machines etc. are grouped in the shop and they will be clustered in like groups.
Process layout is suitable in the following cases:
- Non-standardized products are manufactured, as the emphasis is on special orders.
- It is difficult to achieve good labour and equipment balance.
- Production is not carried on a large scale.
- Many inspections are required.
c) Fixed Position Layout
In a fix position layout, the major component or body of the product remain in a fixed location, other materials, parts, tools, machinery, man power and other supporting equipment’s are brought to this location.
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. This type of layout is used in the manufacture of boilers, hydraulic and steam turbines and ship-building, road ways, flyovers, flyovers, bridges etc.
d) Combination Layout
In practice, the layouts used in industries are the combination of the above-mentioned layouts. Every layout has got certain advantages and limitations. Flexibility in plant layout, is a very important factor, so layout should be such which can be modified according to the requirements of industry, without much investment.
Note:
Types of Plant Layout also depends on type of production method followed by a company. Depending upon the type of production, plant layout can be classified into – (a) Job-Shop Production, (b) Batch Production and (c) Mass Production.
a) Job-Shop Production:
Under this method unique, special or non-standardized products are produced in accordance with the orders received from the customers. As each product is non- standardized varying in size and nature, it requires separate job for production. The machines and equipment’s are adjusted in such a manner so as to suit the requirements of a particular job. Job production involves intermittent process as the work is carried as and when the order is received. It consists of bringing together of material, parts and components in order to assemble and commission a single piece of equipment or product.
Ship building, dam construction, bridge building, book printing are some of the examples of job production.
Fixed Position Layout is suitable for job production.
Characteristics of Job-Shop Production:
- A large number of general-purpose machines are required.
- Large number of workers with different jobs will have to be employed.
- Variations in production process exists.
- Some flexibility in financing is required because of variations in work.
- Large inventory of materials, parts and tools will be required.
b) Batch production:
It is that form of production where identical products are produced in batches on the basis of demand of customers’ or of expected demand for products. This method is generally similar to job production except the quantity of production. Instead of making one single product as in case of job production, a batch or group of products are produced at one time.
Ex.- Medicine, News Paper, Books Motorcycles, Cars, Smartphones etc.
Characteristics of Batch Production:
- The work is of repetitive nature.
- There is a functional layout of various manufacturing processes.
- One operation is carried out on whole batch and then is passed on to the next operation and so on.
- Same type of machines is arranged at one place.
c) Mass or flow production:
This method involves a continuous production of standardized products on a large scale. Production remains continuous in anticipation of future demand. Standardization is the basis of mass production. Standardized products are produced under this method by using standardized materials and equipment. There is a continuous or uninterrupted flow of production obtained by arranging the machines in a proper sequence of operations. Process layout is best suited method for mass production units.
Ex.- Steel products, power generation, petroleum products, Nuts & Bolts, Nails, Aerated Drinks etc.
6.4 Material handling – Need and Types of material handling devices
Material Handling
Material handling refers to the systematic movement, storage, and control of materials during the manufacturing process. It involves planning and implementing processes to efficiently move raw materials, work-in-progress, and finished products throughout the production facility. Material handling plays a crucial role in ensuring that materials are available at the right place, at the right time, and in the right quantity to support smooth and uninterrupted production operations. It includes activities such as transportation, storage, inventory management, and handling equipment utilization to optimize production processes and minimize costs.
Factors for selection of material handling equipment:
- Material properties like size, weight, and fragility.
- Assess work environment factors such as layout, space constraints, and hazards.
- Determine capacity and throughput requirements for efficient handling.
- Evaluate cost, including initial investment and long-term ROI.
- Prioritize safety features and ergonomic design to ensure worker safety and material integrity.
Types of Material Handling Devices
Broadly material handling equipment can be classified into two categories: (a) Fixed path equipment and (b) Variable path equipment.
(a) Fixed Path Equipment
Equipment which moves in a fixed path, are called “Fixed Path Equipment”. Ex.- Conveyors, monorail devices, chutes and pulley drive equipment belong to this category.
A slight variation in this category is provided by the overhead crane, which though restricted, can move materials in any manner within a restricted area by virtue of its design. Overhead cranes have a very good range in terms of weight carrying capacity and are used for handling bulky raw materials, stacking.
(b) Variable path equipment
Variable path equipment has no restrictions in the direction of movement. Ex.- Trucks, forklifts, mobile cranes and industrial tractors etc.
Important Material Handling Devices
CONVEYORS
Conveyors are useful for moving material between two fixed workstations, either continuously or intermittently. They are mainly used for continuous or mass production operations—indeed, they are suitable for most operations where the flow is more or less steady. Conveyors may be of various types, with rollers, wheels or belts to help move the material along: these may be power-driven or may roll freely. The decision to provide conveyors must be taken with care, since they are usually costly to install, less flexible and where two or more converge, it is necessary to coordinate the speeds at which the two conveyors move.
INDUSTRIAL TRUCKS
Industrial trucks are more flexible in use than conveyors since they can move between various points and are not permanently fixed in one place. They are most suitable for intermittent production and for handling various sizes and shapes of material. There are many types of truck petrol-driven, electric, hand-powered.
Their greatest advantage lies in the wide range of attachments available enabling its ability to handle various types and shapes of material.
CRANES AND HOISTS
The major advantage of cranes and hoists is that they can move heavy materials through overhead space.
They can usually serve only a limited area. There are several types of cranes and hoist, and within each type there are various loading capacities. Cranes and hoists may be used both for intermittent and for continuous production.
CONTAINERS
These are either ‘dead’ containers (e.g. Cartons, barrels, skids, pallets) which hold the material to be transported but do not move themselves, or ‘live’ containers (e.g. wagons, wheelbarrows or computer self-driven containers).
ROBOTS
Many types of robots exist. They vary in size, and in function and manoeuvrability. While many robots are used for handling and transporting material, others are used to perform operations such as welding or spray painting. An advantage of robots is that they can perform in a hostile environment such as unhealthy conditions or carry-on heavy tasks such as the repetitive movement of heavy materials.
——End of Unit 6 Notes——
Previous Year Questions:
2023 July Work Organisation Management Semester 6 Question Paper