Need for Capacity Planning Type of Capacity Roles of forecasting in Capacity Planning Facility Layout Planning Product Layout Process Layout Fixed position layout Cellular layout

1. Prepared By,
Mr. Nishant Agrawal
Facility Capacity
&
Layout Planning

2. Session outline
 Need for Capacity Planning
 Type of Capacity
 Roles of forecasting in Capacity Planning
 Facility Layout Planning
 Product Layout
 Process Layout
 Fixed position layout
 Cellular layout

3. Capacity and Capacity Planning
 Capacity of facility is defined as Maximum load that can be
handled by it during given period.
 The load can expressed in terms of amount of inputs or output.
Ex. Capacity of Sugar mill can expressed in terms of the tones of
sugar cane (inputs) crushed per day or in terms of tones of sugar
(output) produced per day

4. Need for Facility Capacity Planning
 Low capacity of facility may result in costs of under capacity,
especially during periods of high demand of the product. Loss of
potential profit.
 Over Capacity of plant means less number of units of product
are produced due to lower demand as compared to capacity
available.

5. Continue…
1. To keep initial investment in the facility as low as possible to
achieve break even volume
2. Investments in facility capacity are long term and can not be
reversed easily.
3. To satisfy the future demand of products without any shortage.
4. Optimal Capacity(Minimum) = Under Capacity + Over Capacity

6. Types of Capacity
Capacity
Design
Capacity
Effective
Capacity
Actual
Capacity

7. Design Capacity
 This is capacity design for the facility. It depends upon the
number and capacity of machines and equipments.
Effective Capacity
 If facility used to make different products, a set up time will be
required between batches of different products to be produced.
Always lower than design capacity.
Actual Capacity
 Maximum rate of output rate which is actually achieved under
the constraints of machine breakdown.
 Actual capacity can be equal to or less than effective capacity.

8. Way of increasing effective capacity
 Proper process quality control so that there are lesser defective
items requiring rework.
 Good Training, High Motivation, Less Absenteeism
 Good coordination with suppliers for timely and defective
suppliers and proper scheduling of products on machines.
 Properly following the environmental and pollution norms,
which result in inspected by government agencies and less
disruption of production activities.
 Proper Facility Location, layout and internal working condition.

9. Roles of Forecasting in Capacity Planning
 Four types of General trends are possible.
1. Growth
2. Decline
3. Cyclical
4. Stable

10. Facility Layout Planning
Layout
Product
Process
Fixed
Cellular

11. Product Layout / An assembly line
 It is suitable when product having standard features is to be
produced in large volumes.
 The production process involves repetitive tasks to be performed
on items arrange in sequence
 The specialized machines and equipment are arranged once after
other. This production line is often called assembly line.
 The assembly line has mechanized moving platform , which moves
at regular interval of time.
 The basic structure of the products to be manufactured in the raw
form are placed on conveyor at equal distance from each other.

12. Continue….
 Across conveyor, there are workstation which have required
machines, equipments, components , tools to perform assembling of
tasks on the basic product.
 The total performance time of tasks assigned to each workstation
should be almost equal.
 This is necessary because conveyor moves after definite period of
time.

13. Advantages Disadvantages
 Easier material handling and less
inventory costs.
 Less supervision and labour
training costs
 High output rate and low cost of
item per unit
 High Efficiency of labour and
equipment
 No need of scheduling once the
line is operational
 Maintenance cost is fairly high
to ensure smooth running of
line
 Inflexible to design changes in
products or processes
(expensive)
 Breakdown of a machine lead
to halt in production
 Repetitive tasks lead to
frustration for workers
Continue….

14. U shaped assembly line
 It is useful particularly when there is a single worker in the line
taking care of all workstation.
 It reduce the walking distance of worker almost by half.
 The closeness of workstations allows workers to helps a fellow
worker catch up. Increase team work among workers.
 Reduce material handling as entry and exit point of material on
line are nearby.
 At the same time , many workstation close to each other may
result in conversation, noise etc. resulting distraction from work.

15. U shaped assembly line

16. Assembly line balancing
 The assembly line can be efficient only when tasks are assigned to
different workstations in such a way that as far as possible, total
processing times at these workstation are equal.
 This is so because conveyor moves at regular intervals of time and
therefore time available for each workstation to complete list of set of
assigned tasks is the same. This is achieve by assembly line balancing

17. Process Layout
 In this machines are arranged in no particular sequence as processing
requirements and sequence are different for various type of products
to be manufactured.
 It is suitable when different produces are produced in lots or
batches. This is called intermittent manufacturing.
 The demand of items is not high enough to warrant continuous
manufacturing.
 Process Layout is very commonly found in service set ups such as
banks, hospitals, post offices, universities etc.

18. Process Layout

19. Continue…
Advantages Disadvantages
 Maintenance cost is low because of
low cost general purpose machines.
 The system is more flexible to design
changes in products as compare to
product layout.
 Breakdown of machine does not lead
to halt in production as substitute
machines are kept ready for such
situations
 The system promote creativity of
workers due to the variety of tasks
performed by them.
 Material handling is time consuming as
there is no fixed route.
 Work in process inventory is usually
high in batch processing
 A low output rate and thus high cost
per unit.
 Routing and scheduling is tedious and
time consuming for different products
 High cost of supervision because of
special treatment to every product
being processed.

20. Fixed Position Layout
 The product is very bulky , heavy , large or has fixed
position. Ex. Construction of building, dam or plant
 Equipment , raw materials, and workers team are brought
to side according to a time schedule for better utilization of
the space available.

21. Cellular layout and Group Technology
 Product layout is desirable by most organization , but
low volume.
 Intermittent layout called cellular layout.
 Cellular manufacturing, a model for workplace
design, is an integral part of just-in-time
manufacturing and lean manufacturing,
 In this groups of items with similar processing
requirements are identified and separate

22. Assignments
Que.1 ) Explain Product layout and Process layout in detail
OR
 Discuss types of Plant Layout with suitable examples.
OR
 Define the various types of plant layout in brief with suitable
examples of each.
OR
 What is Plant layout? List the various types of Plant layout. Carry
out a comparative analysis product and process layout with an
example.
OR
 How many types of Basic Layouts are there for a facility? Briefly
explain each of them.