How to Select a Plant Layout

1. PLANT
LOCATION &
PLANT LAYOUT

2. PLANT LOCATION :
A plant should be located at a place where inhabitants
are interested in it’s success, the product can be sold
profitably and production cost is minimum – DR.
Vishweshwarya.
A plant location is often result of compromise among
conflicting social, economic and geographical
conditions – Lansburg.

3. PLANT LOCATION :
The principle factors to be considered for
the location of a plant :
Availability of Raw materials
Nearness to Potential market
Supply of Labour
Transportation facilities
Availability of Utilities : Water, Fuel, Power
Suitability of Climate & Land
Local Community Considerations
Political Strategic Considerations
Environmental Impact, And Effluent Disposal.

4. PLANT LOCATION :
Availability of Raw Materials :
The Availability And Price Of Suitable Raw
Materials Will Often Determine The Site
Location. Plants Producing Bulk Chemicals Are
Best Located Close To The Source Of The Major
Raw Material.
EX: Soda Ash Plant Should Be Located Near
The Salt Lakes Or Near Sea, Where Sodium
Chloride Is Available Abundantly.
Nearness to Potential Market :
For Materials That Are Produced In Bulk Quantities:
Such As Cement, Mineral Acids And Fertilizers, the
Plant Should Be Located Close To The Primary Market.

5. PLANT LOCATION :
Supply of Labour :
Local Trade Union Customs And Restrictive
Practices Will Have To Be Considered When Assessing
The Availability And Suitability Of The Labour For
Recruitment And Training.
An Adequate Pool Of Unskilled Labour Available
Locally.
Transportation Facilities :
The Transport Of Materials And Products To And
From Plant Will Be An Overriding Consideration.
If Practicable, A Site Should Be Selected That Is Close
to At Least Two Major Forms Of Transport: Road,
Rail, Waterway Or A Seaport.

6. PLANT LOCATION :
Availability of Utilities : Water, Fuel,
Power :
The Word “Utilities” Is Now Generally Used For The
Ancillary Services Needed In The Operation Of Any
Production Process.
Electricity: Power Required For Electrochemical
Processes, Motors, Lightings, And General Use.
Steam For Process Heating: The Steams Required For
The Process Are Generated In The Tube Boilers Using
Most Economic Fuel.
Water For General Use: The Water Required For The
General Purpose Will Be Taken From Local Water

7. PLANT LOCATION :
Suitability of Climate & Land :
Adverse Climatic Conditions At Site Will Increase
Costs. Abnormally Low Temperatures Will Require The
Provision Of Additional Insulation And Special
Heating For Equipment And Piping.
Sufficient Suitable Land Must Be Available For The
Proposed Plant And Future Expansion. The Land
Should Be Ideally Flat, Well Drained And Have Load-
Bearing Characteristics. A Full Site Evaluation Should
Be Made To Determine The Need For Piling Or Other
Foundations.

8. PLANT LOCATION :
Local Community Considerations:
The Proposed Plant Must Fit In With And Be
Acceptable To The Local Community. Full
Consideration Must Be Given To The Safe Location
Of The Plant. So That It Does Not Impose A
Significant Additional Risk To The Community.
Political And Strategic Considerations:
Capital Grants, Tax Concessions, And Other
Inducements Are Often Given By Governments To
Direct New Investment To Preferred Locations; Such
As Areas Of High Unemployment. The Availability Of
Such Grants Can Be The Overriding Consideration In
Site Selection.

9. PLANT LOCATION :
Environmental Impact, And Effluent
Disposal:
All Industrial Processes Produce Waste Products,
And Full Consideration Must Be Given To The
Difficulties And Coat Of Their Disposal. The Disposal
Of Toxic And Harmful Effluents Will Be Covered By
Local Regulations, And The Appropriate Authorities
Must Be Consulted During The Initial Site Survey To
Determine The Standards That Must Be Met.

10. LAYOUT PLANNING :
Layout planning in manufacturing and service
organizations involves the physical arrangement of
various resources available in the system to improve
the performance of the operating system, there by
providing better customer service.

11. LAYOUT PLANNING :
Plant layout begins with plant location
and continues through 3 further levels:
Layout of department with in site.
Layout of items with in the department.
Layout of individual work place.
Objectives of Plant Layout :
Economies of materials, facilitation of manufacturing
and handling of goods.
Proper and efficient use of floor space.
Ensure proper flow of goods and processes without
any delay.
Provision of supervision and control.

12. LAYOUT PLANNING :
Objectives of Plant Layout :
Careful planning to avoid changes and re-layout of a
plant.
Provision of safety to workers.
Meet quality and capacity requirement in the most
economical manner.
Provision of adequate medical facilities and
refreshment facilities.
Have enough of material handling space.
Space for future expansion.

13. LAYOUT PLANNING :
Implications of Layout Planning :
The relationship between “volume-variety-flow”
provides crucial inputs to the layout problem.
As the flow becomes more cumbersome, the type of
layout may significantly influence the ability of the
operations manager to effectively plan and control
operations on the shop floor.
Types of Layouts:
Over the years, operations management and
practitioners have evolved four major types of
layouts.

14. LAYOUT PLANNING :
Types of Layouts:
Process Layout
Product Layout
Group Technology Layout
Fixed Position Layout
Process Layout:
A process layout is an arrangement of resources on
the basis of the process characteristics of the resources
available.
Product layout has a disorganized flow.

15. LAYOUT PLANNING :
Process Layout:

16. LAYOUT PLANNING :
Product Layout :
In a product layout, the resources are placed to
follow exactly the process sequence dictated by a
product.

17. LAYOUT PLANNING :
Group Technology Layout:
Group Technology Layout is a philosophy that seeks
to exploit the commonality in manufacturing and
uses this as the basis for grouping components and
resources. The GT is often known as Cellular
Manufacturing.

18. LAYOUT PLANNING :
Fixed Position Layout:
Fixed Position Layout are typically employed in
large – project type organizations.

19. LAYOUT PLANNING :
Volume-Variety-Flow Implications For
Layout Planning :
Very Low Medium High Variety One-off
Variety Variety Execution
Flow Attributes Stream lined Multiple Flow Disorganized Jumbled Flow
flow paths Flow
Volume High Volume Mid-Volume Low-Volume One Piece
Attributes
Examples of Industry: Mass Batch Job shops: Project Shops
Operating Product/Service Manufacturing Customized
Systems Provider Firms product/Service
Types of Layout Product Layout Group Process Layout Fixed Position
Used technology Layout
Layout