Here an attempt is made to introduce some of the advantages of a line layout into a

situation where pure line layout is not practicable. Here machines are placed in groups.
Each machine group makes a family of parts which require similar treatment. This layout
lies between process layout and line layout. It is easier to control than a strictly process
layout and has more flexibility than a line layout. These days there is a tendency to bring
an element if flexibility into the manufacturing system as regards the batch size variations
and the different operations sequences.

FMS — Flexible Manufacturing System was first installed in England in 1968. It

employed group layout and is suitable for metal cutting, electronic assembly IC
manufacturing and testing etc. FMS is a mixture of traditional automation and state-of-
the-art computer technology which essentially consist of a set of machine tools
performing production operations linked up with material handling system. All these are
controlled by a central computer system. FMS has several patterns of CNS (computerized
numerical control machines):

1. Flexible Manufacturing Module (FMM)

2. Flexible Manufacturing Cell (FMC)

3. Flexible Manufacturing System (FMS).

4. Flexible Manufacturing line (FML)

The grouping into cells enables the performance of similar type of functions for a group
of products. A shop floor is converted into a collection of cells; one for each product.
Every cell moves according to its own rhythm, producing complete from scratch. There is
no waiting time involved. This reduces costs. The money tied up in idle machinery or
partly assembled products is released quickly.

Job Shop Layout

Here there is processing of job production, and hence the system is very flexible. The
layout depends upon the analysis of the universe of orders received and is a very complex
affair.

Plant Layout Factors

There are a host of factors that affect the plant layout. It is necessary to optimize these to
have an ideal layout. The factors have been grouped into the following clusters:

1. Manpower factors.
2. Machinery factors
3. Movement factors.
4. Material factors.
5. Waiting factors.
6. Service factors.
7. Factory building factors.
8. Change related factors.

All these groups have a number of features which are borne in mind before attempting
the layout. The ultimate layout design is a compromise amongst the diverse factors.

The following are the popular types of plant layout:

(1) Process layout (2) Product layout (3) Combined layout (4) Static product layout or
Project layout (5) Cellular layout (6) Job Shop layout. Each layout is explained in brief in
the following paragraphs:

Process layout: It is also called functional layout. All machines performing similar type
of operations are grouped at one location in the process layout e.g. all lathes, milling
machines, cutting machines etc in the engineering shop will be clustered in their like
groups. Thus all forging will be done in one area and all the lathes will be placed in
another area. In this layout, several products may share a machine to make its full use.
The sequential arrangement of the machine group is generally, but not necessarily made
on the basis of labor operations. In this type of layout the process rather than the product
has a dominating role. The product is given secondary consideration and is moved for the
purpose of operations to the process section with like machines stationed at a particular
point. This type of process is more suitable to job order type of production. In such
production the operation differs from product to product. So, it is desirable to arrange the
machines on the basis of process rather than on the products.

The typical arrangement of the machines in the process layout will be as under:

Product ‘A’ and Product ‘B’ with their differential sequence will be routed for the
processing in the manner.

Advantages: The process layout avails of the following advantages:

1) Like product layout it eliminates the duplication of machines an enables the optimum
use of installed capacity.
2) It facilitates the flexibility in production. It is more flexible than a line layout.
Different products can be made without the changes in the arrangement of machine. The
production capacity is not arranged in rigid sequence and fixed rated capacity with line
balancing.
3) Like product layout, the break down of one machine does not interrupt the entire
production flow.
4) Specialization in supervision becomes possible.
5) Individual incentive schemes can be developed.

Disadvantages: The following are the main disadvantages of the process layout:
1) Due to lack of straight line sequence of production, it is impossible to maintain the line
balancing in production. So the problems of bottleneck and waiting and idle capacity
arise.
2) The cost of material handling increases due to long routing and back tracking between
the processes.
3) The processing time is prolonged which reduces the inventory turnover and increase
the investments in inventories.
4) The inspection cost increases. Due to frequent changes in the machine set-up
inspection is required at each stage of the process.
5) The cost of supervision increase due to specialist supervisors and more number of
supervisors are required at each process unit.
6) The production planning and control becomes difficult due to complexities arising in
routing, scheduling, dispatching and follow up.
7) It is not possible to implement the group inventive schemes on the basis of quantity of
the products manufacturing
8) More space is required for internal storing, reservoir of materials and provision for the
expansion of the particular process section.

Product layout:

In this type of layout, the machines are arranged in the sequence as required by the
particular product. All machines as required to balance the particular product the product
line layout. In this layout, one product goes through all the machines lined up, in the
order required by its manufacture. The best known example of this type of layout is seen
in motor car production. To make this layout successful, the work load on the various
machines must be balanced. The process of getting even loading at each stage of
production is called line balancing.

In this type of layout, the product is dominating over the process, in the sense that the
product is given the primary importance and the process machine must remain present at
a point where the product needs its services. Thus, unlike the process layout, the process
is given secondary importance in relation to the product. Product layout suitable for
continuous flow production with few items of production:

It does not require frequent changes in machine set up. The typical arrangement of the
machines in the product with the separate independent product lines for the Product ‘A’
and Product ‘B’ will be as shown.

Advantages: The product layout is advantageous as under:

1) Reduced material handling cost due to straight line production flow.

2) Mechanization of material handling is possible due to handling between fixed points.
3) Line balancing may eliminate bottlenecks an idle capacity.
4) Shorter operating cycle due to shorter and speedier movement of materials.
5) Maximum utilization of machine and labor capacity through developing proper
balance between them.
6) Effective control over production with reduced supervision by generalist supervisors.
By reducing the manufacturing to simple steps we can often use less skilled labor.
7) Effective quality control with reduced inspection points. It does not require frequent
changes in machine set-up.
8) Effective production planning and control. Unlike process layout, the routing,
scheduling, dispatching and follow up are relatively easier.
9) Maximum use of space due to straight production flow and reduced need of interim
storing.
10) It facilitates the implementation of the group inventive schemes for the workers.
11) It is relatively easy to control

Fixed Position Layout

As the term itself implies, fixed layout involves the movement of men and machines to
the product which remain stationary. In this type of layout, the material or major
components remain in a fixed location, and tools, machinery and men as well as other
pieces of material are brought to this location. The movement of men and machines to the
product is advisable because the cost of moving them would be less than the cost of
moving the product which is very bulky.

Also called the fixed location layout, this type is followed in the manufacture of bulky
and heavy products such as locomotives, ships, boilers, aircraft and generators. The
construction of a building requires a fixed location layout because men, cement, sand,
bricks, steel, wood and others are taken to the site of the construction. This is equally true
of a brick kiln. Another example is that of a hospital, where doctors and nurses (workers)
and medicines and other paraphernalia (materials) are taken to the patient (product).

The advantages of a fixed position layout are:

1.Men and machines can be used for a wide variety of operations producing different
products.
2.The investment on layout is very small.
3.The worker identifies himself with the product and takes pride in it when the work is
complete.
4.The high cost of and difficulty in transporting a bulky product are avoided.

Cellular Manufacturing (CM) Layout

In CM, machines are grouped into cells and the cells function somewhat like a product
layout within a larger shop or process layout. Each cell in the CM layout is formed to
produce a single parts family—a few parts, all with common characteristics, which
usually means that they require the same machines and have similar machine settings.

Advantages of CM
Among the advantages of cellular layouts are lower work-in-process inventories, reduced
material handling costs, shorter flow times in production, simplified production planning
(material and labor), increased operator responsibilities, improved visual control and
fewer tooling changes, therefore facilitating quicker set-ups. Overall performance often
increases by lowering production costs and improving delivery on time. Quality also
tends to improve.

Disadvantages of CM

Disadvantages include reduced manufacturing flexibility and potentially increased

machine-down time ( since machines are contained to cells and may not be used all the
time) and finally duplicate pieces of equipment may be needed so that parts need not be
transported between cells.

Combined Layout

The application of the principle of product layout, process layout or fixed location layout
in their strict meanings is difficult to come across. A combination of the product and
process layouts, with an emphasis on either, is noticed in most industrial establishments.
Plants are never laid out in either pure form. It is possible to have both types of layout in
an efficiently combined form if the products manufactured are somewhat similar and not
complex.

In plants involving the fabrication of parts and assembly, fabrication tends to employ the
process layout, while the assembly areas often employ the product layout. In soap
manufacturing plants, the machinery manufacturing soap is arranged on the product-line
principle; but ancillary services, such as heating, the manufacturing of glycerine, the
powerhouse, the water treatment plant are arranged on a functional basis.

To extend the logic of the combined layout, we may refer to the application of the fixed
location principle in every industrial establishment. Is it not true that workers are bought
from different places in buses to the factory every day? Will not material and tools be
carried to the place of manufacture every time?

To sum up

In the final analysis, the combination that produces the desired volumes of products at the
least total cost is preferred. Marketing is concerned with maximizing income, industrial
engineering is concerned with minimizing cost and management is gambling that there is
a sufficient difference in its favor

Introduction to facilities layout

by admin on March 31, 2007
A factory is a place where all the industrial activities are housed. After the selection of
the factory site, the factory building is constructed at the selected site. The problem of
arrangement of various departments inside the factory building arises only after the
availability of the floor area covered by the walls and roofs forming the factory building.
It should be noted that, though the problem of factory and plant layout arises only after
the building facilities have been made available, they are considered along with the
construction of the factory building. Certain specific requirements of the administrative
departments and the characteristics of the production processes and plant services have a
direct bearing on the construction of the factory building. Thus both factory building and
factory layout are considered simultaneously. The architectural design and the exterior
view of the factory are considered with the technical requirement of various departments.
The emphasis is given to the technical aspects rather than the aesthetic considerations.

Factors like owned or hired building, new construction or readymade building, single
storey or multi-storey building have a considerable effect on the decision of the
arrangement of various departments inside the factory. A distinction between the factory
layout and the plant layout should be noted carefully. The factory layout is a broad
consideration and it decides about the housing of all activities inside the factory.
Generally the activities are divided into the following groups:

1. Office area in which the administrative department are housed;

2. Plant area which houses the following activities:
3. Production departments,
4. Services departments,

Technical Services — like receiving department store-room, stock room, tool-room

inspection department, power house or boiler room material handling equipment,
shipping department etc.

Personal Services — Like parking area, time-keeper’s office, canteen and lunch
room, recreation room, toilets etc.

In relation to factory layout plant layout is a narrow consideration and concentrate on the
arrangements of production and services departments along with the location and
sequence of machines and equipment.

Ideal Plant Layout

Plant layout is the overall arrangement of the production processes, store room, stock
room, tool room, materials handling equipment, aisles, racks and sub stores, employee
services and all other accessories required for facilitating the production in the factory.
As it encompasses production and service facilities and provides for the most effective
utilization of the men, materials and machines constituting the process, it is a master
blueprint for coordinating all operations performed inside the factory.
A good layout is one which allows materials rapidly and directly for processing. This
reduces transport handling, clerical and other costs down per unit, space requirements are
minimized and it reduces idle machine and idle man time.

Cellular Manufacturing
by V S Rama Rao on December 13, 2008

Cellular manufacturing also known as Group Technology is an approach whereby

production can be done in small batches while taking advantages of the flow
characteristics of the product or line layout. Components that may appear to be dissimilar
but which require similar manufacturing processes and/or similar setups of the machine
are grouped together and go through a particular group of such machines which may be
dissimilar. Thus, instead of functional work centers we have these groups of machines or
short lines. For instance, we may have a turning machine, a drilling machine and
polishing equipment put together in a group, using which a group of components can be
manufactured. However, not all components of a components’ group need to go through
all the machines in the corresponding group or short line of machines. This concept is
called Group Technology. Each of these short lines or groups of machines is also called
as a ‘cell’. A cell thus consists of a group of machines and a ‘family’ of related
components being produced on these machines. Since the manufacturing plant would
now consist of several cells, manufacturing using such Group Technology is also called
Cellular Manufacturing.

Group technology exploits the similarities and relationships between large populations of
components. It thereby could reduce transport between successive machines, reduce set
up on a machine and cut down the artificial uncertainty of the flows. The effect would be
a reduction in the time and cost of manufacture.

Cells can be formed to manufacture different variety (within a range) of components. The
entire variety requirement of the factory in the short term and a foreseeable intermediate
term can be met by having a limited number of such lines or cells. In effect, we have all
the variety needed, and at the same time we have simulated line production too. We thus
have the flexibility of variety as well as reduced flow times. A small number of people
functions as a cohesive group and accomplishes a common whole task. So, there is a lot
more job satisfaction. Unlike large assembly lines, there is no boredom here and very
little in-process inventory is needed within a cell.

Management can empower the cell to function as an independent unit with independent
maintenance and internal quality functions. The management has to ensure, however that
the ‘group’ goals are in line with the company goals.

Benefits of cellular Manufacturing:

What happens with such grouping? We already saw some of the advantages. Here is a
more comprehensive list.

1. Compared to the earlier process layout, there are very few halts. Hence flow times are
reduced considerably.
2. Unnecessary fresh setups or modifications to setups are eliminated. This saves process
times significantly.
3. “Very few halts” translates to a drastic reduction in inventories of work in process.
4. However all the required variety can be produced. Group technology does not
compromise on the variety of items.
5. Even a sudden rush order can be produced without causing much problem.
6. Employees feel empowered.
7. Employees in the cells derive much job satisfaction.
8. Cells satisfy several other psychological needs of its members: a sense of belonging
self esteem mad security. This, in turn, reduces absenteeism, labor turnover and labor
unrest.
9. An employee of a cell is free to do any operation within the cell, provided he has
developed that skill. Multi-skilling is commonly observed in cellular manufacturing. So,
there is job enlargement for the employee.
10. Since the employee is familiar with a known range of components that come to a cell,
the employee tends to make less errors; this can improve the quality of the items.
11. Quality can also improve because of reduced handling of the items, and multiple
operations get done in a single cell.
12. Since cells mean a modular approach to organizing production, it is easier to
manage/direct/reorient/repair a cell than either a huge elephantine flow or the amorphous
process layout.
13. In time of crisis, such as sudden demand changes or labor unrest, the crisis can be
contained because of the modular nature of production.
14. Production control methods could be simpler; there could even be visual methods of
production control in some cases. Because, the product (being worked upon) goes quickly
through the system.

Layout selection – Chief Considerations

Merits and Demerits of Product and

Process Layouts
by V S Rama Rao on December 13, 2008

Product Layout: Possible Advantages:

(1) Low total flow time of the product from the input stage to the output stage (i.e. higher
rates of output) due to:
(a) Continuous flow without intermediate stoppages and storages;
(b) Repetitive, small, fragmented jobs learnt to perfection by the concerned workers; and
(c) Minimum set-up times of machines.

(2) Production planning and control is simple; less paper work

(3) Inspection required is less
(4) Lower degrees of skills in the manpower may suffice
(5) Raw materials and other inputs can be planned better, even to the extent of ‘Just in
Time’, resulting in lower inventories.
(6) Lower work-in-process inventories needed.
(7) Lower material handling costs
(8) By ‘balancing’ the line, labor utilization can be high.

Product Layout: Possible Disadvantages:

(1) None or very little variety possible.
(2) Less flexibility to changes, particularly to other than minor changes.
(3) Entire line or significant portions of the line may come to a grinding halt if any
equipment in the line breaks down, resulting in high stoppage costs.
(4) Larger maintenance crew needed.
(5) Very low job variety and therefore lower job satisfaction and higher boredom for the
workers.
(6) More coordination required by supervisors.
(7) Duplication of machines and equipments may be necessary resulting in higher capital
investment.
(8) More space may be required.

Process Layout: Possible Advantages:

(1) Very high degree of variety in products is possible.

(2) Flexibility and adaptability to changes is high.
(3) Machine breakdowns do not cause crippling production stoppages.
(4) Requires small maintenance crew.
(5) Good level of variety, skills requirement and therefore higher job satisfaction.
(6) Coordination and supervision is simpler as the processes are similar and the staff is
skilled.

Process Layout: Possible Disadvantages:

(1) Higher flow times of products due to:

(a) Intermittent flows of the material; and (b) More numerous machine set-ups.
(2) Production planning and control is more complex; much paper work is necessary.
(3) Worker skills need to be high in order to complete all components of the job.
(4) Higher inventories of basic raw materials may be necessary due to much uncertainty
of demand.
(5) Higher work-in-process inventories due to necessary intermediate storages, if the
machine and labor utilization is to be at a satisfactory level and if the flow times of the
products are to be at acceptable levels.
(6) More handling of materials.

Optimization in a Product/Line Layout:

The product or line layout is relatively easy to plan as the layout is according to the flow
of the product as it takes shape from the raw material state to the finished goods state.
The equipment and the work areas are laid out according to the sequence of the
operations involved in converting the raw material to the finished product. The problem
in the Line layout may not be that of how to sequence or relatively position the work
areas, but rather to group the work elements in such a way that there is very little idle
time at any of the grouped work centers. The problem in Line layout is therefore one of
balancing the flow line of work (and also of the material) in such a way as to minimize
the idle time at the different work centers (alternatively called ‘work stations’). This is
technically termed as Assembly Line Balancing. This procedure automatically minimizes
the relevant costs associated with Line layout.

Optimization in a Process Layout:

The problem in Process layout is one of arranging the different work areas in such a way
that the inter-area material movement costs are kept to a minimum. Of course, one has to
take into account, simultaneously, the total plant area available and any constraints on the
individual area requirements or position requirements of the work centers. A
mathematical treatment for this problem is available; but one ought to note that the
mathematical optimizing models take into consideration only the cost of material
handling. It is assumed, at best, that the other relevant costs of layout will also be reduced
on account of this optimizing procedure. The material handling costs between two work
areas (departments) is the product of the distance between the two work areas and the
number of loads that are handled between the two departments during a unit period of
time. The sum of these products, for all the combinations of departments, should be
minimum for an optimal plant layout.

The starting point in such a mathematical optimization procedure for the Process layout is
therefore, the gathering of the data on the number of loads per unit time moved between
different combinations of the work areas. This data is called ‘load summary’ and is
presented in matrix fashion.

Advantages and Purpose of ABC analysis

by V S Rama Rao on November 4, 2009

Stores layout:

ABC analysis can be efficiently utilized for the stores layout as well. Quite a bit of time
and effort can be saved, which otherwise is lost in locating the items, by depositing the
fast moving items near the points of issue.
Most of these items will; belong to ‘A’ Category

B items which are less active can be put slightly further.

Most of C items can be put in the less accessible area except those few which might have
fallen in C category because of their low unit price and not because of their low
consumption. Such items may also be located in readily accessible areas.

Value Analysis:
To secure maximum benefits it is essential to select those items for value analysis which
offer the highest scope for cost reduction. The ABC analysis is a helpful step in this
direction.

Purpose of ABC Analysis:

The object of carrying our ABC analysis is to develop policy guidelines for selective
controls. Normally, once analysis has been done, the following broad policy guidelines
can be established in respect of each category.

‘A’ items merit a tightly controlled inventory system with constant attention by the
purchase manager and stores management.

‘B’ items formalized inventory system with periodic attention by purchase and stores
management.

‘C’ items use a simpler system designed to cause the least trouble for the purchase and
stores department.

A items: High consumptions value

1) Very strict control

2) No safety stock
3) Frequent ordering
4) Weekly control statements
5) As many sources as possible for each item
6) Rigorous value analysis
7) Accurate forecast in materials planning
8) Minimization of waste obsolete and surplus
9) Maximum efforts to reduce lead time.

B items: Moderate value

1) Moderate control
2) Low safety stock
3) Once in 3 weeks
4) Monthly control reports
5) Two or more reliable sources
6) Moderate value analyses
7) Estimate based on past data on present plans
8) Quarterly control over surplus and obsolete items
9) Moderate efforts.

C items: Low consumptions value

1) Low control
2) High safety stock
3) Bulk ordering once in 6 months
4) Quarterly control reports
5) Two reliable sources for each item
6) Minimum value analysis
7) Rough estimates for planning
8) Annual review over surplus and obsolete materials
9) Minimum clerical efforts

Making ABC Analysis:

The entire procedure for making ABC analysis can be summarized in the following steps:

1) Calculate rupee annual issues or each item in inventory by multiplying the unit cost
byte number of units used in a year.
2) Sort all items by rupee annual issues in descending order.
3) Prepare a table showing item No., Unit cost, annual units issued and annual rupee
value of unit issued.
4) Starting at the top of the list compute a running total item by item issue value and the
rupee value of consumption.
5) Compute the cumulative percentage for the item count and cumulative annual issue
value.
The normal items in most organizations show following pattern:

1) 5% to 10% of top numbers items account for 70% of total consumption value. These
items are ‘A’ class.
2) 15% to 20% of the number items account for 20% of total consumption value. They
are ‘B’ class.
3) The remaining number of items account for the balance 15% of total consumption
value. They are ‘C’ class items.

Advantages of ABC analysis:

This approach helps the materials manager to exercise selective control and focus his
attention only on a few items when he is confronted with lakhs of stores items.
By concerning on ‘A’ category the materials manager is able to control inventories and
show visible results in a short span of time, By controlling the ‘A’ its and doing a proper
inventory analysis, obsolete stocks are automatically pinpointed. Many organizations
have claimed that the ABC analysis has helped in reducing the clerical costs and resulted
in better planning and improved inventory turnover. ABC analysis has to be resorted to
because equal attention to ‘A’ ‘B’ and ‘C’ items will not be worth while and would be
very expensive. Concentrating on all the items is likely to have a diffused effect on all the
items irrespective of the priorities.

Principles of material handling

by admin on March 31, 2007

Material handling is a technique, the efficiency of which is governed by the following

principles:

1. The first principle of material handling is not to handle the material at all. The
materials should be moved as little as possible. The selection of production machinery
and the type of the plant layout should be such that the material and long may be
eliminated as far as possible.

2. The time of each move should be minimized. This can be attained through the shortest
routes and use of mechanized material handling equipment in place of manual labor.

3. The distance of each move should be minimized. This can be attained through use of
the shortest routes and elimination of backing tracking.

4. The principle of “unit load� should be applied. According to this principle, the
materials should be moved in lots rather than on individual basis. The optimum number
of pieces should be moved in one unit.

The concept of containerization and keeping materials on pallets is applied in deciding

the unit load. The principal of unit load avails the economies in the form of reduced
loading, labor cost, packing cost, elimination of damage and pilferage, savings in time
and the effective utilization of material handling equipment.

5. The gravity should be used wherever possible as it is the cheapest source of motive
power.

6. Re-handling and back-tracking of the materials should be avoided. This can be attained
through proper layout and efficient routing and scheduling.

7. The appropriate material handling equipment should be selected so that the safety,
efficiency and flexibility can be maintained.
8. The design of the container, pallets, drums etc. should be such that they may entail
economy in handling, at the same the material damages during the transit may be
reduced.

9. The material handling service must not interfere with the production flow.

10. The safety of the people must be taken care of.

11. The provision of the stand-by facilities should be made so that the sudden breakdown
may not shut down the operations.

12. The check up, repairing and maintenance of the existing material handling equipment
should be made periodically.

13. The material handling services should be evaluated periodically and necessary
changes should be incorporated wherever it is possible.

Types of Material Handling Equipments

Various types of material handling services are required to

be performed during the production processes such as,

(a) Lifting, Holding, Dropping;

(b) Loading, unloading;
(c) Positioning;
(d) Moving;
(e) Stacking etc

All these services can be performed manually. However, in the modern complex
production system, manual material is inefficient as compared to mechanized material
handling. Moreover, it is more dangerous. So many types of material handling
equipments have been developed to perform all these services. Various types of material
handling equipment performing the different as well as similar of functions are available.
They can be classified on various bases, like:

Types of equipment: (1) Cranes and hoists (2)Conveyors (3) Chutes (4) trucks, Tractors
and Trailers (5) Rails (6) Rope ways and cable ways (7) Pipelines.

Types of services:

(1) lifting (2) moving (3) positioning (4) stacking

Space of movement of equipment: (1) On the floor (2) Above the floor (3) overhead (4)
Beneath the ground.

PLANT LAYOUT
When a new plant is erected, the question of the placement of machinery at different
places, the location of stores ,inspection cabins ,tool rooms, maintenance wings ,plating
shops, heat treatment chambers ,toilets ,canteens, and trolleys, cranes and other handling
equipments and the like ,receive a priority consideration .This is so because ,the
efficiency of the production flow depends ,largely on how well the various machines
,production facilities and employee amenities are located in a plant In a properly laid out
plant, the movement of materials, from the raw material stage to the end product stage ,is
smooth and rapid; the movement is generally in a forward direction: the materials do not
criss-cross ,or go backward and forward for further operations. Moreover, production
bottlenecks and delays are few, and materials handling costs are reduced .Such
arrangements constitute the subject matter of a plant layout.

A good deal of expertise is used by managements to secure a proper layout for new or
existing plants .The use of expertise is necessary, because, there is no set pattern of layout
for all plants. It differs from plant to plant, from location to location and from industry to
industry. A lay-out which is good for a processing industry will not to be good for a job
industry ;a layout which is suitable for a small-sized factory will not be suitable for a
giant plant; or a layout fit for a plant located on a flat terrain cannot be suitable for a plant
which is located on an uneven terrain. But the basic principles governing plant layout are
more or less the same .Moreover, the initial layout is almost never final or permanent
.Changes do take place in product design, production methods and the size of the plant.
Such changes necessitate a revision of the existing layout.

Meaning, Definition and Scope

A plant layout refers to the arrangement of machinery, equipment and other industrial
facilities—such as receiving and shipping departments, tool rooms, maintenance rooms
and employee amenities—for the purpose of achieving the quickest and smoothest
production at the least cost. The subject of plant layout not o0nly covers the initial layout
of machines and other facilities but encompasses improvement in, or revisions of the
existing layout in the light of subsequent developments in the methods of production .In
other words, a plant layout is a floor plan for determining and arranging the desired
machinery and equipment5 of a plant, whether established or contemplated, in the one
best place to permit the quickest flow of material at the lowest cost and with the least
amount of handling in processing the product from the receipt of the raw materials to the
shipment of the finished products.

A more simple, clear and comprehensive definition is given by Knowles and Thomson.
They say that a plant layout involves

1. Planning and arranging manufacturing machinery equipment, and services for the first
time in completely new plants.
2. The improvements in layouts already in use in order to introduce new methods and
improvements in manufacturing procedures.

Objectives of a Good Layout

· Provide enough production capacity
· Reduce material handling co0sts.
· Reduce congestion that impedes the movement of people or material
· Reduce hazards to personnel
· Utilize labor efficiently
· Increase employee morale
· Reduce accidents.
· Utilize available space efficiently and effectively
· Provide for volume and product flexibility
· Provide ease of supervision.
· Facilitate co-ordination and face-to-face communication where appropriate.
· Provide for employee safety and health.
· Allow ease of maintenance.
· Allow high machine/equipment utilization.
· Improve productivity.

The Plant Layout must also provide for future expansion phase wise either for increase in
capacity or for backward and forward integration including provision for modernization
or installation of state of the art equipments if any in future.