Chapter 13

Physical Facilities

The many manufacturing establishment that dot our countryside are not something that
sprang up overnight, but represent the culmination of many labor hours of planning.
Countless decisions, such as the products to be made in the plant, the equipment
required, the type of structure needed, and the location of the plant, had to be made
before the ground could be broken to build the plant.

Plant Location

The immensity of the plant location problem is attested to by the fact that billions of
dollars are spent each year on new manufacturing buildings in the United States, not to
mention the ever-increasing investment in foreign subsidiaries. For each of these plants,
someone had to make a decision as to where to put it, and many plants have ended up
in somewhat surprising locations. Indeed, the widespread dispersion of our factories
has done much to alter the industrial landscape.
Three situations require an answer to the question of plant locations:

1. A new plant just being started.

2. A new branch of an existing plant, or
3. A new location for an existing plant.

Analysis of the reasons why many companies were started in their present locations will
reveal that they were located in the community that was the home of the founder. For
example, one the country’s leading fountain pen companies was started in a
Midwestern city because the founder owned a jewelry store in that community, and a
prominent pharmaceutical company was started in its present location by a former
druggist in that city.

Location Planning

Before a location for a plant is sought, long-range forecasts should be made anticipating
the future needs of the company. These should be based on the company’s expansion
policy, the anticipated diversification of products, the changing market, the changing
source of raw materials, and any other foreseeable influences.

Careful attention should be given to all the economic factors that influence the need for
the new plant and the size and location of the plant. The use of such forecasting
techniques as linear and exponential regression are not uncommon.

One large company follows seven basic steps in locating and building every new plant:

1. Establish the need for a new plant.

2. Determine the best geographical area for the plant on the basis of the company’s
business needs.
 3. Establish the requirements (i.e. product to be made, equipment and buildings
needed, utilities and transportation necessary, number of employees, etc.)
4. Screen many communities within the general area decided on
5. Pinpoint a few communities for detained studies.
6. Select the best location.
7. Build the plant.

Factors Influencing Location

If one were to conduct a survey on why companies have chosen their present plant
location, many reasons would be cited: Proximity to a good highway network,
abundant labor supply, proximity to markets, adequate water supply, and so on. How
important each factor is will vary from one company to another.

Proximity to good highways

In one survey of 4100 firms, the most frequent factor that prompted the companies
to build where they did was the quality of the highway system, particularly its
relationship to markets, raw materials and labor supply. The existence of excellent
highways, such as the interstate superhighways, makes the suburbs, small
communities, and country as readily accessible as the cities.

Access to a Major Airport

Very few firms can function in a national market place without using air
transportation in one form or another. The reasons are numerous and cannot be
enumerated completely here; however, the need to have salespeople reach distant
customers rapidly, to obtain raw materials on an emergency basis and to have
service engineers visit customers in need are but a few items from a long list. Some
firms have their own aircraft, so a small regional airport would be of value.

Labor supply

Obviously a company cannot operate without employees, and the nature of the labor
market should be investigated to ensure that an adequate supply of qualified
employees is available in the area. It is necessary to some organizations that skilled
craftsmen be hired to fill many of the positions, and it is desirable to locate the plant
in an area where a sufficient number are available.

Nearness to Market

The cost of and time required for, transporting the product to the customer is a major
consideration for many companies. For this reason it is desirable that the company
be located near the center of its market. This is particularly true when the
manufacturing process increases the bulk of the products. Examples are the
 automobile assembly plants situated in various parts of the country and the regional
tire plants built by the major rubber companies.

Nearness to raw materials

Companies using bulky or perishable materials find its desirable to be near a readily
available source of their materials. The food industry has this problem with its
canning factories, meatpacking plants, and creameries. Other examples include
steel mills, saw mills, paper mills, and cement manufacturers. In these industries, the
guiding principle is what the economists refer to as “weight losing”. If the raw
material loses a lot of weight in processing, then the plant should be located near the
source of raw materials.

Nearness to an existing plant

Often, one of the principal an factors in the location of a new branch plant is that of
keeping it reasonably close to the parent plant. Several years ago the National
Industries Conference Board found in a survey of 476 new plant locations that the
sites were chosen in 42% of the cases of the cases because they were near an
existing plant or warehouse. That so high a percentage would select sites for this
reason in an area where executive supervision and staff consultations will be
facilitated.

Availability of Land and Land Costs

The cost of land is usually a minor factor in the choice of a location. However, the
availability of an adequate site sometimes presents a problem. IN communities that
are interested in attracting new industries, land may be offered at a considerably
reduced price or at no cost, and this may influence some companies to locate there.
However, a company should not be misled into accepting a site that might later
prove to be a serious handicap.

Transportation

The company should be located in an area where adequate transportation facilities

of the desired type are available. Some companies find it desirable to be located at
an ocean port or on the inland waterways to take advantage of the lower cost of
transporting materials by boat or barge. This is particularly true for bulk materials
such as coal, iron ore and petroleum products. For other companies, access to
railroad and/ or trucking facilities is adequate. The costs of shipping the product or
bringing in raw materials are significant factors for many companies, and the
reduced freight rates available in some areas should be weighed against other
operating costs to determine the predominant consideration.

Water Supply
For those companies requiring large quantities of water in processing their products,
the water supply must be given serious attention in choosing a plant location. This
was a major consideration in locating a plant of a pharmaceutical company requiring
tremendous quantities of water. The underground supply of water is gradually being
 depleted in some areas and presents a matter of critical importance to the
companies already situated there.

Consideration should be given to any pollution of the water, which might cause
processing difficulties. Although the federal government and most states have
antipollution laws, the waste material dumped into the rivers or streams may create
problems for new companies requiring a supply of fresh, pure water.

Power Supply
Every company has need for electric power, but only to those companies using
tremendous quantities is this items of major importance in choosing the plant site.
An adequate supply of power at low rates is available in most areas: seldom is it
necessary for the company to develop its own. However, some companies prefer to
maintain a power station in a standby condition to take care of any emergencies that
may arise.

Pollution Control
During recent years, there has been a wave of public sentiment in regard to pollution
control. This led to the establishment of the Federal Environmental Protection
Agency and the setting of deadlines on air and water controls to protect the public
health. The combination of new laws and social pressure has had great impact on
many companies, particularly the heavily polluting industries (e.g. public utilities,
steel, oil, paper, chemicals)

Taxes
The kinds and amounts of taxes levied by a state or community should be
considered in locating a plant. Taxes become one of the operating costs; the kinds
of taxes and the basis for fixing them should be thoroughly investigated. As an
enticement to get plants to locate there, some states and territories (particularly
Puerto Rico) offer companies tax exemptions for a stipulated period of time. This has
influenced many companies to locate in these areas.

Climate
Seldom does the climate influence the location of a plant. IN those companies
requiring controlled temperature, humidity, and ventilation, it is possible to install
equipment to maintain the required conditions. Sometimes the personal preferences
of the company executives who will be working in the plant influence the location of
a plant in a particular climate.

Community Administration and Attitude

Since all industries have social responsibility to the communities in which they are
located, it is important that the local authorities and the populace of the community
be eager to have the plant located there. It is also essential that the community be
able to provide the necessary municipal services in the way of police and fire
protection, maintenance of streets, refuse disposal and so on.
Schools, Churches, Parks, and Residential Areas
Finding the best town for a new plant is not solely an impersonal search for lowest
transportation costs, low tax rates and an adequate water supply, but is also a
search for a community in which the employees will have excellent schools,
churches, parks and residential areas available to them. Since every new plant
affects a number of employees and their families, many companies feel that it makes
good sense to pick a town that will provide good services and a pleasant
atmosphere for their employees.

Local Sites

After the community for a plant has been selected, the problem still exists of
selecting the exact site on which the plant is to be built. The final choice of site will
usually result from considering the relative merits of each of the available sites.
In weighing these sites against one another, the following questions, should be
asked about each of the factors that should be considered.

Transportation Facilities
Is the location easily accessibly to the main highways? Are the railroad facilities
adequate to ensure prompt receipt and shipment of goods? Can a railroad siding be
made available? Are airports available?

Availability of water electric power, gas, and sewers

Is water available in sufficient quantities? Is adequate electric power available? Is
adequate gas available? Is the sewer system adequate to take care of the plant’s
needs?

Zoning restrictions
Will the zoning restrictions interfere with the company’s building plans or operations?

Soil Characteristics
Are the soil bearing characteristics suitable for supporting the building and
equipment? Will the soil provide adequate drainage?

Drainage
Will the area drain away all surface water so that the buildings will not become an
island in the middle of a flooded area?

Parking areas
Is adequate space available to provide for employee and visitor parking?

Space for Expansion

Is sufficient space available to take care of expansion of the plant within the
foreseeable future?
Accessibility by Workers
Can the site be reached by public transportation? Is the road and street network
leading to the site adequate to allow speedy entrance and exit of employees during
rush periods?

Cost of Land
Can the site be secured at a reasonable price?

Existing buildings
Are existing buildings available that might be suitable for the company’s operation,
and can they be rented or purchased at reasonable price?

Sources of information

There are a number of excellent sources of information pertaining to plant locations.

These include the U.S. Department of Commerce, state industrial development
groups, state employment agencies, railroad promotion departments, power
companies, city industrial development areas, and chambers of commerce.

Brief information about different states and communities is contained in

advertisements sponsored by these agencies in many of the leading magazines and
newspapers. Complete facts and figures about the growth of the area, availability of
labor, transportation facilities, wage levels, and similar information can be obtained
from one or more of these groups.

Evaluation of Plant Locations

It is very difficult to make a final decision as to the choice for a plant location. One
location may have the advantage form a market standpoint, another may be closer
to the materials supply, and a third may provide a better labor supply. IN attempting
to weigh these and other factors against one another, two methods are commonly
used; rating plans and cost analyses.

Rating Plan
In the rating Plan, weights are assigned to each of the factor that should be
considered. The factor deemed most important is given the highest weight. And
each of the other factors a lesser amount. For example, nearness to raw materials
might be weighted at 400 points, nearness to market at 300, the labor supply at 275,
and the other factors at lesser amounts. The total number of points for each of the
alternative location is determined and is used to assist in making a decision. In most
cases this rating should be supplemented with a cost analysis.

Cost Analysis
As an aid in evaluating alternative plant location, estimates should be made for all
costs entering into the operation of the plant in each of the locations. These
estimates should cover the initial cost of the physical facilities, the cost of raw
 materials, the cost of manufacture, and the cost of distribution. After the
determination of each of these costs, the unit cost for manufacturing the product in
each of the locations can be reckoned and may be used to aid in deciding on the
optimum location.

Trends in Plant Location

There has been a definite trend in the location of industrial plants. More and more
companies have been decentralizing their operations and locating plants in small
towns or suburban areas – particularly the large companies that require extensive
space for buildings, parking lots, and other facilities. Also, many companies have
chosen local sites that are in the country.

This has allowed them to secure ample space and freed them from paying the
higher tax rate usually found in the city. Often a number of advantages can be
gained by locating a plant in a small town. Inexpensive building sites with ample
space for expansion are usually available, and the community will probably welcome
the increased revenue the company will bring into the area; a friendly atmosphere
should prevail. In addition, labor is commonly available at a lower rate than in cities,
more harmonious relations with the workers may be possible, and higher productivity
may be attained.

Plant Buildings

When the company has chosen the community in which it will locate, consideration
must be given to providing physical facilities. If the company is small, it may be able
to rent or buy and existing building. Seldom, however, will a company requiring
extensive space be able to find suitable facilities available for rent or purchase. This
necessitates, then, the design and construction of new buildings.

In planning a building for the manufacturing facilities, a number of factors must be

given consideration, including

1. Nature of the manufacturing process

2. Plant layout and space requirements
3. Lighting, heating, ventilating, and air conditioning.
4. Service facilities
5. Future expansion
6. Appearance.

Nature of Manufacturing Process

One of the chief determinants of the kind of building required will be the type of
manufacturing process. The various machines and equipment used in the manufacture
of steel plate, glass bottles, rubber tires, metal castings, food products, and other items
dictate the type of building to be constructed.
A building must allow sufficient floor loading, head space, bay size, and ventilation, as
well as providing for the storage and flow of materials and adequate loading docks and
railroad sidings. Some manufacturing processes require considerable ventilation or
controlled temperature and humidity.

Plant Layout and Space Requirements

All the factors influencing the internal arrangement of a manufacturing plant are
discussed later in this chapter. Suffice it to say at this point that the location of the
machines, service centers, and offices, the size of the bays required, and the degree of
flexibility desired all will have considerable influence on the kind of building created.
Ideally, the optimum plant layout should be determined, and the building should be just
a shell around this design.

Service Facilities

In addition to the heating, ventilating, and air-conditioning facilities, many companies

maintain other service facilities, such as firefighting equipment, incinerators, sewage-
treating systems, emergency power equipment, cooling towers, and compressed air
equipment. Some of these may be housed in separate buildings the construction of
which may be quite different from that of the main plant building.

Future Expansion

The expansion of industry has made management aware of the importance of planning
for future expansion. Most companies erecting new buildings given consideration to this
problem. If widespread expansion is anticipated, this may dictate the type of building to
be constructed. Usually, single-story plants can be added onto much easier than
multistory plants, and in many cases a false wall is left in that side of the building to
which a new addition is to be connected.

Appearance

Appearance is being given considerable attention in choosing the style of architecture

and building materials for modern plants. Modern factories are no longer ugly, smoke-
spewing clusters, but are rapidly becoming attractive structures in well landscaped
surroundings.
Single Versus Multistory Buildings

In planning factory buildings, the advantages of single-story versus multistory

arrangements must be weighed and that type of building selected that will best meet the
needs of the company. The advantages of the single-story building are as follows:

1. Low construction cost per square foot of space.

2. Requires less time to erect.
3. Easy to expand
4. Will take high floor loads
5. Suitable for assembly of heavy or bulky products
6. Allows high ceilings
7. No space lost for elevators and stairs
8. Fewer columns
9. Easier to handle materials
10. Allows flexibility in layout
11. Rest rooms and service equipment may be located in overhead trusses
12. Maximum use of daylight and natural ventilation is possible.
13. Easier to isolate obnoxious or hazardous areas
14. Easier supervision

And the advantages of the multistory building are:

1. Requires less land

2. Allows use of gravity for materials and movement
3. Allows more compact layouts
4. Allows vertical arrangement of production and storage space
5. Lower heating cost
6. Top stories may be used for departments requiring special conditions

Trends in Building Construction

The trend appears to be to build a single-story plant connected to a single-or multi-story

office located in a spacious area. Plants are being located on large tracts of land to
allow space for parking costs and future expansion.

Bay sizes are being increased to as much as 40 feet by 60 feet or more to allow
unrestricted processing areas and to facilitate flexibility. Increased use is being made of
rigid or semi rigid frames; the size of structural members is thereby reduced and framing
problems are simplified. Precast concrete units are being used more widely. Increased
use is also being made of the overhead space among the roof supporting members as
an area in which to locate service equipment. This space is accessible for installation
and maintenance.
Plant Layout

Plant layout is a plan of the most effective arrangement of the physical facilities and
personnel for the manufacture of the product. Plant layout, often referred to as facilities
design, encompasses much more than the mere planning of the arrangement of the
production equipment and should include a careful study of the following:

1. External transportation facilities.

2. Receiving operations (unloading, inspection, stores)
3. Production activities
4. Materials handling.
5. Service and auxiliary operations
6. Quality Control and inspection areas
7. Packaging operations
8. Storage operations
9. Shipping operations
10. Offices

Objectives of Plant Layout

The primary goal of plant layout is to maximize profits by the arrangement of all plant
facilities to the best advantage of the total “manufacturing equation”- people, materials,
machines, and money. IF a finished layout is to fulfill this goal, it should be planned with
the following objectives clearly in mind.

1. Facilitate the manufacturing process.

2. Minimize materials handling.
3. Maintain flexibility of arrangement and of operation.
4. Maintain high turnover of work-in-process.
5. Hold down investment in equipment.
6. Make economical use of building cube.
7. Promote effective utilization of personnel.
8. Provide for employee convenience, safety, and comfort in doing the work.

Factors affecting Plant Layout

Many of the basic factors that affect the design of the product, the design of the
manufacturing process, the selection of tools and equipment, and the planning for
materials handling carry over to influence the plant layout. We discuss some of these in
the following paragraphs.
 Product

The type of product affects plant layout in many ways. Large and heavy equipment
requires assembly bays. Also in these cases it is often more economical to move
personnel and machines to the product than it is to move the product to the work area.

Volume or rate of production

This is a key factor in all manufacturing planning. In plant layout it is reflected in the total
size of the operation to be planned as well as being the principal factor in the
determination of the type of manufacture to be employed.

Quality

The meaning of quality requirements in a product can be aided through effective plant
layout. Soundproof rooms, clean rooms, and air-conditioned factories are often needed
to meet product specifications.

Equipment adequate space must be provided for all equipment-manufacturing,

materials handling, and service. Equipment specifications are of major importance to
the plant layout engineer.

Type of manufacture

It is obvious that a plant laid out for a continuous manufacturing process will be quite
different from a factory operating as an intermittent plant.

Building ideally, a building should be built to suit the best plant layout. This ideal is
seldom attained. Adapting a factory layout to an old building presents a significant
challenge to the plant layout engineer.

Plant Site
The plant site is the connecting link between the factory and the surrounding
community. Services such as railroad sidings, highways, and utilities may easily affect
not only the positioning of the building on the plant but the internal arrangement of the
departments as well.

Personnel
Comfort and safety of personnel must always be carefully considered when laying out a
plant. A single operation, or workstation, may within its own boundaries be safe yet
endanger other workers in the general area.

Materials Handling Plant

Basic to economical production is good materials flow and a soundly conceived
materials handling system. Since materials handling is the selection on which the plant
layout fits, it is inseparably ties in with the layout function.
The Basic Plans for Plant Layout
Before discussing how plant layouts are made, we should identify the three basic plans
for the arrangement of manufacturing equipment. These basic plans are the process
layout, the product layout, and the group layout. Selection of the basic plan to be used
depends on many factors; however, of these the type of product and the type of
manufacture are of the greatest influence.

Process Layout
In a process layout the type and operational characteristics of the manufacturing
equipment are the determining factors in the arrangement of the factory. This basic plan
can be readily identified; as such plants will have machine departments, heat-treating
departments, finishing rooms, and assembly floors. Even within such departments,
machines of similar work characteristics (lathes, milling machines, drill presses, etc) are
commonly grouped together.
Product Layout
In product layout the work to be performed on the product is the determining factor in
the positioning of manufacturing equipment. The aim is to arrange machines, regardless
of type, in the order of the operations that are performed on the many component parts,
on subassemblies, and on the final assembly of the item being manufactured.

Group Layout
A group layout is one for which some of the advantages of a product layout are
achieved for relatively low production volumes. This is achievable when the items to be
produced can be grouped into families based on the manufacturing processes required.
In this way it is possible to create a production quantity for a family that cannot be
created for individual parts.

A group layout can consist of several mini product lines, one devoted to each family.
Burbidge has developed a procedure, called production flow analysis (PFA), which
enables an analyst to group parts into families which can be effectively manufactured in
a group layout configuration.

Plant Layout Procedure

As in most industrial activities, there is a logical approach to the plant layout problem.
First, let us list the steps briefly, and then discuss each in detail. In solving a plant layout
problem:

1. Accumulate all the basic data that will be needed.

2. Analyze and coordinate these basic data.
3. Determine a general flow pattern for the materials in process
4. Design the individual workstations or production centers.
5. “Assemble” the individual layouts into the total layout in accordance with the
general flow pattern and the building facilities.
6. Coordinate this plan with the plan for the handling of materials.
7. Complete the plant layout.
8. Prepare an appropriation request indicating the funds needed and justifying the
expenditure of these funds.
9. Convert the plant layout into floor plans that can be used by the plant engineer in
the location and installation of the equipment.

Types of Layouts
Three principal types of plant layout modeling procedures and materials find use in
modern industry: block layouts, two – dimensional transparent template layouts
(from which “blueprints can be produced) and three-dimensional model layouts. The
basic building block of all layouts is the block layout.

Block Layouts
The spine layout is also a block layout. This type of layout is often prepared to a
scale of 1/8 inch equals 1 foot. It is constructed, using material flow and other basic
data, to establish the basic configuration of the facility. The following example will
show how data can be structured into two elementary formats which can be the
basis of manual layout procedures or elaborate computer software procedures.
In this example six layout entities have been determined (departments or collections
of workstations): receiving, shipping, storage, assembly, machining, and stamping.
The areas required for each entity have been determined by analyzing the machine
requirements, aisle requirements, and so on.

Area (Sq Ft)

Receiving 1600
Shipping 1800
Storage 3500
Assembly 3000
Machining 4200
Stamping 2000

An analysis of the process routings and demand for the parts (products) that will be
produced in this facility can enable one to create a from – to chart (figure below)
which shows the number of work – in process loads of material that will flow
between pairs of departments (layout entities).
Another useful chart for the layout engineer is the relationship chart. For the same
six departments we can define strong or weak relationships between pairs of
departments. The letter values in this chart indicate, in a qualitative way, the
closeness relationships between pairs of departments.

The letters can be interpreted as flows: A, absolutely important for these

departments to be close together; E especially important for these departments to be
close together, I, important for these departments to be close together, O, ordinary
closeness is sufficient; U, Unimportant for these departments to be close together.

The information in this chart can be combined with area information so that the
layout designed can have more visual cues to help him or her derive the design. The
space relationship diagram (figure below) shows the rectangular models of the
departments, which can be drawn to scale, connected by quantities of lines that
have equivalence with the previously defined relationships. IN this diagram A = 4
lines, E = 3 lines, 1 = 2 lines, O = 1 lines, and no lines will indicate a U relationship.
A “block layout “ of the facility could be manually configured by observing the space
relationship diagram. It might look like figure 13.16. This part of the layout problem is
concerned with where the departments (layout entities) should be located with
respect to themselves. Though the years a number of computer-based routines have
been developed, some with extensive graphics capabilities. Very often, however, the
previously defined from- to – chart or relationship chart, or both, will be part of the
input data for these computer based routines.

Two –dimension Template layouts

These are probably the most common type of plant layout Modern techniques are
characterized by the fact that copies can be duplicated directly form these layouts for
use in the plant or for recording purposes. A template layout is commonly prepared
to a scale of ¼ inch equal 1 foot.
Some of the advantages of the two-dimensional layout are:

1. It is the least costly

2. It can be readily interpreted by technical personnel .
3. Duplicate copies can be made.

On the other hand, the disadvantages of the two-dimensional layout are:

1. It is hard to visualize overhead equipment and possible conflicts that it may

create
2. Interpretation by nontechnical personnel is difficult.

Model Layouts
These layouts are not so common, due in large part to the expense involved.
However, for the construction of new plants using any overhead equipment in the
way of conveyors, cranes, or mezzanine installations, this type of layout should
receive serious consideration. Model layouts are prepared to the same scale as
template layouts ¼ inch equals 1 foot. A model or three –dimensional layout.
The relative advantage of this type of layout are:

1. It helps “sell” the layout to management.

2. It aids the visualization of the layout by nontechnical personnel.
3. It facilitates the work of the plant layout engineering making the layout; models
can be shifted quickly for study of optional arrangements.
4. Different arrangements can be photographed for comparative purposes.
5. Provides means for checking overhead structures.

Disadvantages of the three-dimensional layout are:

1. The cost is high.
2. It requires storage areas.
3. IT cannot be taken down to the shop floor for reference purposes.
4. For full effectiveness, a two-dimensional layout has to be prepared from the
model layout for informational purpose.

Using Computer Program in Plant Layout

It is possible to consider the plant layout problem as a combinatorial problem.
Consider the six departments that were configured into the layout presented. There
are other possible locations for each departments. If there were n departments and n
locations, one would have to evaluate n! department – location combinations to find
the best one. Computer software is available for problems such as this: evaluating
the many potential alternative layouts.
Several programs which are available for commercial use:
CORELAP (Computerized Relationship Layout Planning) is a construction program
that uses the relationship chart and attempts to develop a layout whose objective is
to achieve maximum adjacencies between the departments.

PLANET (Plant Layout Analysis and Evaluation Technique) is another construction

program which uses flow data expressed by the from – to chart or relationship chart.

MAT (Modular Allocation Technique) is a heuristic construction procedure which

attempts to solve the quadratic assignment problem.

ALDEP (Automated Layout Design Program) Is the first program to use a

probabilistic aspect in its solution methodology, ALDEP is a construction program
that attempts to maximize the closeness between departments.

General Principles of Plant Layout

Some of the general principal of plant layout that have proven sound are:
1. Move materials maximum distances. This principle brings out the concept of
“straight line”. However, in many instances it is more practical to take
circular paths such as those found in “merry-go-rounds” used in many
production foundries.
2. Avoid or minimize the backtracking of materials. Backtracking not only will
increase the distance of movement but can result in congestion of the
channels of materials handling.
3. Plan for a minimum of materials handling. The advantage here has been
discussed earlier in this book. It is an overlapping principle, because the
effectiveness of the plant layout will make a major contribution to this end.
4. Use Manufacturing space economically. This applied not only to the production
areas but to the storage areas as well. IN the past it has been common
practice to regard this principle in term of square feet of floor space only.
The current trend is to consider the cubic space in the building. In many
plants, overhead conveyors are now being utilized as a storage device.
5. Permit all flexibility possible. The chance of change should always be considered
and the equipment arranged so that changes can be made at minimal cost
or disturbance to the manufacturing process. This is especially a problem
in the automotive industry, where model changes are involved

6. Allow for possible plant expansion. The plant layout engineer should always
consider potential increases in production when planning the arrangement
of a factory.
Evaluation of Plant Layouts

Evaluation as to which – if any- plan represents the best plant layout is difficult. As we
have noted, one objective is to get optimum output of product with a minimum of
manufacturing space. There are, however, so many other factors that influence the
productive efficiency of a plant, that to measure the effectiveness of the layout by space
alone can hardly be accepted as conclusive.