After setting up business we should be aware how is our manufacturing set up. Plant layout teaches us that

1. PLANT LAYOUT
Manish Kumar
manishatmarketing@gmail.com

2. TYPESOF
LAYOUT
 PRODUCT BASED LAYOUT
 PROCESS BASED LAYOUT
 FIXED POSITION LAYOUT
 FLEXIBLE MANUFACTURING SYSTEM
 GROUP TECHNOLOGY/CELLULAR
MANUFACTURING LAYOUT
 COMBINED BASED LAYOUT

3. PRODUCT
LAYOUT
 Also called straight-line layout, line processing layout,
flow like layout or layout for serialized manufacture.
 Product layout involves the arrangement of machines in
one line, depending upon the sequence of operations.
 Example: Paper mill

4. Advantagesof
ProductLayout
 Regulation of production
 Scientific materials handling
 Mo bottleneck in production
 Lesser supervision
 Greater possibility of space utilization

5. Disadvantages
ofProduct
Layout
 Heavy capital expenditure
 High overhead charges
 Demerits of breakdown
 Inflexibility
 Additional output not possible
 Lack of specialised supervisors

6. ProcessLayout
 Also called the functional layout or job shop layout.
 In process layout, machines and services are grouped
on a functional basis and operations of the same type
are performed in the same area.

7. Usageareasof
ProcessLayout
 Expensive machinery is required
 Production involves a large variety of items having
limited volume in each type
 Operations are not balanced in time
 When the demand is small and intermittent.

8. Advantagesof
processlayout
 Lower capital investment
 Greater flexibility
 Specialization
 Effective supervision
 No disruption in work schedules
 Lower overhead costs

9. Disadvantages
ofProcess
Layout
 Complexity of production planning and control.
 Frequency of inspection.
 Difficulty of materials handling.
 Greater floor area.
 Longer processing time.
 Larger stock of materials in process.

10. Fixedposition
layout
 Fixed position layout involves moment of men and
machines to the product which remains stationery.
 This type is followed in the manufacture of bulky and
heavy products such as locomotives, ships, boilers
aircraft

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

12. Disadvantage
 It usually involves a low content of work-in progress.
 There appears to be low utilisation of labour and
equipment
 It involves high equipment handling costs.

13. Flexible
Manufacturing
System
 FMS is a computer-controlled system.
 It contains several work stations, each geared to
different operations.
 Workstations machines are automated and
programmable.
 Automated materials-handling equipment move
components to the appropriate workstations.
 Then, it is moved onto the pre-programmed machines
that slect, position, and activate the specific tools for
each job.
 Once the machines has finished one batch, the
computer signals the next quantity or component, and
the machine automatically transferred to the next
workstation in its routing.

14. Advantages
 FMS are regarded as one of the most efficient methods
to employ in reducing or eliminating in manufacturing
industries.
 FMS brings flexibility and responsiveness to the
manufacturing floor.
 Lower work in process inventerories
 Reduced throughput time and its variability
 Improved manufacturing control.
 Improved quality and reduced scrap rate.
 Reduction of floor space used.
 Better status monitor of machines, tools and material
handling devices.

15. Disadvantage
 Limited ability to adapt to changes in product.
 Substantial preplanning and capital.
 Tooling and fixture requirement.

16. Cellular
Manufacturing
(CM) Layout
 In Cellular manufacturing, machines are gropuped into
cells and the cells function somewhat like a product
layout within a larger shop or process out. Each cell in
the cm layout is formed to produce a single parts
family- a few parts, all with common characterstics,
which usually means that they require the same
machines and have similar machine settings.

17. Advantagesof
group
technology
 Reduced flow times.
 Process time saves
 Inventory reduction
 Produce variety of products
 Rush order can be purchased
 Job satisfaction

18. Disadvantage
 High cost
 Not suitable for large variety of products
 Impractical
 Difficult to conceive

19. Combined
layout
 The application of the principles of prodyct latout,
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.

20. Criteriaofgood
layout
 Maximum flexibility
 Maximum coordination
 Maximum use of volume
 Maximum visibility
 Maximum distance
 Minimum handling
 Inherent safety

21. Promotion
 “Promotion may be defined as the process of organising
and planning the finance of a business enterprise
under the corporate form”
L.H. Haney
 “Promotion may be defined as the discovery of business
opportinities, and the subsequent organisation of
funds, property and managerial ability into a business
concern for the purpose of making profits therefrom. “

22. Aspectsof
promotion
 Promotion of a business involves two types of decisions.
 The entrepreneur will have to select a business idea
after evaulating it properly and then making efforts to
procure various inputs needed to start the business.
 Second aspects involves the completition of various
formalities which may be required under various laws
or states.

23. Entrepreneurial
decisions
regarding
promotion
 Discovery of business idea
 Evaulating the idea
 Selection of idea
 Assembling of various inputs

24. Promotionof a
company
 A joint stock company requires a number of legal
formalities before it can be set up. It has to deal with
the following aspects:
 Registration or incorporation
 Capital subscription
 Commencement of business.

25. Registrationor
incorporation
 Application for approval of name
 Prepartion of memorandum of association
 Preparation of article of association
 Preparation of other documents

26. Capital
subscription
 After going therough the incorporation formalities, the
next stage will be to raise funds.
 A public company cannot commence business unless
minimum subscription as stated in the prosepctus has
been subscribed. The amount of minimum subscription
is fixed by taking into account the following
requirements:
 Amount required for purchase of property
 Amount needed for payment of prliminary expenses
 Repayment of money borrowed by the company
 Requirement for working capital
 Amoiunt required for any other expenditure stating the
nature and purpose thereof and estimated ampount in
each case.

27. Plantlocation
 Plant location decision includes to choose an ideal
plant location is one where the cost of the product is
kept to mimimum with a large market share, the least
risk and maximum social gain.

28. Importanceof
PlantLocation
 Accessibility
 Economies of scope
 Aid to technology and cost
 Competitive advantage
 Static nature

29. Factors
infleucing
location
 Raw materials availability
 Nearness to market
 Availability of labour
 Fuel and power
 Transport facilities
 Soil and climate
 Personal factors
 Government policy
 Financial facilities
 Industrial atmosphere
 Political and economic conditions
 Taste and prefernce of people