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iii. The investment in land and buildings is quite large in case of bigger
firms and economics of one location against another needs to be
evaluated carefully to ensure fair return on such investment.
Problem 1: A medium scale industrial unit wants to select one of the three
locations, for putting up its factory. The data or both tangible and
intangible factors collected by them are given below:
Plant layout is the placing of right equipment coupled with right method in
the right place to permit the processing of a product in the most effective
manner through the shortest possible distance and through the shortest
possible time.
It may not be possible to define a good layout in a few words, but there are
criteria, which can be used to judge whether, or, not the layout is good.
Some of them are as follows:
h. Inherent Safety: A good layout is one that makes the plant safer for
the workmen.
i. Safe and improved environments: A good layout is one that makes the
work centres and the areas around them satisfying to the workers and
employees.
Product A
Gear Cutting Debarring Processes
Machines
Assembly
Heat
Spot Welding Blackodising
Treatment Product C
Product B
4) Workers attain greater skills since they have to attend to one type of
machines and operation.
5) Imbalance of work in one section does not affect the working of the
other sections.
Disadvantages:
Product, or, Line Layout:- Product layout is also called “layout by sequence”.
The layout of plant is such that material flows unidirectionally and at a
steady rate. Special purpose machineries and equipments with built-in
control systems are used here. The equipments, if necessary, are duplicated
to avoid backtracking and to ensure that material always flow in the forward
direction towards their stage of completion.
Gear Cutting
Machine Grinding Grinding
ASSEMBLY