Operations management

1. SUBMITTED
BY:
SNIGDHA
16M909
PLANT LAYOUT
SUBMITTED TO:
DR. VIKAS
THAKUR

2. CONTENTS
 Concepts
1) Introduction
2)Factors affecting Layout
3)Scope of Facility Layout
4)Types of Facility Layout
 Scope of the Topic
 Cases
 Conclusion

3. DEFINITION
 The layout facility is the physical location of the various
departments/units of the facility within the premises of
the facility.
 The departments may be located based on the
considerations such as:
 Less walking distance.
 Logical sequence of the processing requirements of the
product.
 Emergency services etc

4. Factors affecting Layout
o Nature of the product
o Production volume
o Location of the site
o Type of machines
o Climate
o Service facilities
o Safety of employees
o Type of production
o Type of process
o Managerial Policies

5. Scope of Facility Layout
RELATED TO MATERIALS
 Less material handling and minimum transportation
cost
 Less waiting time for in-process inventory .
RELATED TO WORK PLACE
 Safe working conditions from the point of ventilation,
lighting etc.
Minimum movement of workers
 Least chances of accidents, fire, etc.
Proper space for machines, workers, tools etc.

6. Contd:
 Simpler plant maintenance.
 Increased productivity, better product quality, and
reduced cost.
 Least set-up cost and minimal change-over.
 Objective related to flexibility.
 Scope for future expansion.
Performance related
objectives

7. Types of Layouts
1) Process Layout
• The process layout is particularly useful where low volume of
production is needed. If the products are not standardized, the
process layout is more low desirable, because it has creator
process flexibility than other. In this type of layout, the machines
and not arranged according to the sequence of operations but
are arranged according to the nature or type of the operations.
This layout is commonly suitable for non repetitive jobs.
CAR
1
CAR
2
CAR
3
Conveyer

8. Process layout
1) In a process layout, similar processes or
processes with similar needs are located
together because:
i. It is convenient to group them together or
ii. The utilization of the transforming
resource is improved
2) Different products of customer have different
requirements therefore they may take different
routes within the process.
3) The flow in a process layout can be very
complex.

10. B) PROCESS LAYOUT

11. An example of a process layout in a library
showing the path of just one customer
Entrance Exit
On-line and
CD-ROM
access room
Loan books in subject order
Enquiries
Store
room
Counter staff
Copying areaCompanyreports
To
journal
sack
Current
journals
Reserve
collection
Reference
section
Study desks

12. Advantages of Process Layout:
• Greater Flexibility
• Better and more efficient supervision possible through
specialization
• Capacity of different product line can be expanded
easily.
• Better utilization of men and machine.
Disadvantages:
• More floor space
• More work in progress
• More distance travelled by the product.

13. Product Layout
•It is appropriate for producing one standardized
product, usually in large volume. It is also called as
flow-shop layout or straight line layouts. The machines
are arranged according to the progressive steps by
which the product is made.
•Example: chemical, paper, rubber, refineries, cement
industry.

15. PRODUCT LAYOUT

16. An army induction centre with uses
product layout
Lecture theatre
Uniform
issuing
area
Uniform
store
Waiting
area
Waiting
area
Doctor
Doctor
Doctor
Doctor
Doctor
Doctor
Blood
test
Blood
test
Blood
test
X-ray
X-ray
X-ray
Record
personal
history and
medical
details

17. Advantages:
•Mechanization of materials is possible and material handling
cost can be reduced.
•It requires less floor area.
•It facilitates better production control.
•Production bottlenecks are avoided.
Disadvantages:
•Expansion of product line is difficult.
•There is difficulty is supervising.
•Breakdown of equipment disrupts the production.
•Cost of production increases with the fall in volume of
production.

18. FORD MOTOR COMPANY(1908-
1915)
 The assembly line developed for the Ford Model
T had immense influence on the world. What was
worked out at Ford was the practice of moving
the work from one worker to another until it
became a complete unit, then arranging the flow
of these units at the right time and the right place
to a moving final assembly line from which came
a finished product. Regardless of the earlier uses
of some of these principles, the direct line of
succession of mass production and its
intensification into automation stems directly from
what was worked out at Ford Motor Company
between 1908 and 1913

22. Maruti Udyog- challenge 50
Shinichi Takeuchi, former head of Suzuki’s Kosai facility in Japan, was
sent to one of Suzuki’s most profitable subsidiaries, Maruti Udyog, as
director(Production) in October 2001.
Thus trying to fill in the wide performance gap between Maruti and
Suzuki’s Kosai facility, which produces 600,000 cars in a year.
The low production cost will give Maruti not just more profits, but
an advantage over competition.
At Maruti’s Gurgaon plant, Takeuchi has pulled from under the carpet all
kinds of Muda(Japanese for wastage) starting with the assemble line. At
some of the workstations of the assemble line, the number of steps
a worker has to walk to fetch parts and tools from their racks has
been brought down to 5 from the earlier 10-15.With almost 200
workers manning one assemble line, the saving have led not just to
increase in productivity, but also safety.

23. Another problem successfully handled by Takeuchi at the
assembly line is the proper installation of rubber beadings for
doors by the line operators. Earlier staggering 14% of the cars
would fail the shower test(to check the leakage) as a result of the
improper installation of these beadings. Today, the figure stands at
less than 1%. Takeuchi is still not happy because that means nine
cars fail the test in every shift.
There is a specific sequence to be followed for making the fitment.
If that is not done, it may result in warranty claims at the
customer’s end. Even if it is detected in the shower test, costly
rework is required. The car needs to be taken off the assembly
line to a rework station, where extra man-hours have to be spent
fixing the problem.
Takeuchi ensured that the workers follow the installation
sequence exactly, so that there is no scope for rework.

24. Maruti udyog ltd. Worked quality and efficiency levels across the
board in order to achieve its benchmark of Suzuki’s facility at
Kosai, Japan, through the challenge 50 programme.
Compared to the 100% benchmark of Kosai, Maruti presently has
comparative assemble hours per vehicle of 78.12% and a direct pass
rate of 80.64%.
Takeuchi has introduced a quicker set-up technique called the single-
minute exchange of dies.
Simultaneously to tackle the non-availability of components, about 160
vendors who do not meet strict parameters of quality, cost,
productivity, and delivery will be dropped.
To increase the speed and quality, Maruti had 120 robots compared to
only half a dozen of robots five years ago. It strived to reach its
benchmark on every parameter by the year 2004-2005.

25. Cell Layout
Grouping technology layout or cellular manufacturing
layout is made for a single part family i.e. parts with
common characteristics. In this layout dissimilar machines
are grouped into cells and each cell functions like product
layout.

26. 26
 It has the advantage of bringing the efficiencies of a product
layout to a process layout environment

27. 27
Process Flows before the Use of Cells

28. © Wiley 201028
Process Flows after the Use of Cells

29. The ground floor plan of a department store
showing the sports goods shop-within-a-shop
retail ‘cell’
Sports shop Menswear
Women’s clothes
Luggage
and gifts
Confectionery,
newspaper,
magazines and
stationery
Books
and
videos Footwear
Perfume
& jewellery
Elevators
Entrance

30. Case Study
 At Hughes Ground Systems Group (Fullerton,
California, USA), producing circuit cards for
defence equipment, the first cell, which began as
a pilot project with 15 volunteers, was launched in
1987. One month later a second cell began, and
by 1992 all production employees, numbering
about 150, had been integrated into seven cells.
 Prior to cells, circuit card cycle time, from kit
release to shipment to the customer, had been 38
weeks. After the cells had taken over the full
production sequence (mechanical assembly,
wave solder, thermal cycle, and conformal coat),
cycle time had fallen to 30.5 weeks.

31. Contd.
 Later, when it seemed that the cells were overly
large and cumbersome, cell sizes were shrunk by
two-thirds, resulting in “micro cells” that cut cycle
time by another 1.5 weeks.
 Finally, by adopting certain other improvements,
cycle times had decreased to four weeks.
 Other improvements included reducing work-in-
process inventory from 6 or 7 days to one day
and percent defective from 0.04 to 0.01

32. ADVANTAGES AND
DISADVANTAGES
 It reduces material handling cost
 Simplifies machine changeovers.
 Reduces in-process inventory and
 Automates the production
 But reduces the flexibility.

33. 4) Fixed Position Layout
When due to size, shape and other characteristics
constraints, the products cannot be moved, the machine and
operators move around the product.
Example: construction of a building, assemble of an aircraft
or ship.
Advantage:
Less investment is required in this
layout and less transport cost as
bulky machines are not moved.

34. Stationary Layout

35. Fixed position layout
1) In a fixed position layout, the transformed
resource does not move between its
transforming resources.
2) Equipment, machinery, plant and people who
do the processing, move, as necessary
because the product or customer is either:
i. Too large
ii. Too delicate

37. Example of Fixed Position Layout

38. Boeing 787 Dreamliner being
outfitted

39. Requirements for effective layout
 Minimize material handling costs.
 Utilize space efficiently.
 Utilize labor efficiently.
 Facilitate communication and interaction between
workers, between workers and their supervisors,
or between workers and customers.
 Reduce manufacturing cycle time and customer
service time.
 Eliminate wasted or redundant movement.
 Provide a visual control of operations or activities.
 Provide flexibility to adapt to changing conditions.

40. CASE STUDY : PepsiCo
 Since the creation of its iconic Pepsi-Cola soft drink
in 1898, PepsiCo has grown into a global consumer
products leader offering a vast portfolio of food and
beverage brands. One of its divisions, Pepsi
Beverages Company (PBC), manufactures, sells, and
distributes some of the company’s most recognized
beverages – including Pepsi, SoBe, Gatorade, and
Mountain Dew – in the United States, Canada, and
Mexico.
 As part of consolidation strategies, the company
decided to relocate a beverage filling line from an
Oklahoma(US) facility to an existing 50,000 square
foot facility in Dallas(US) where it was currently
operating three other filling lines for the Gatorade and

41. Challenge
Configure Existing Facility Layout to Include
New Bottling Line
 Pepsi did not want to relocate any of the original
platforms that were around the existing line. “We
wanted to put this new line in a completely
different configuration,” said Ken Graham, project
lead and senior principal engineer for PBC.
 Because safety is first in everything they do,
PepsiCo needed to make sure the platform design
would meet OSHA’s(Occupational Safety and
Health Administration) safe work standards. The
platforms would be supporting conveyor and other
equipment over an open product zone, so they also
had to make sure the platforms met – and exceeded

42. Solution
 To aid in this effort, Graham and his team chose
Cubic Designs to design, manufacture and install
these new 18 foot tall food grade platforms that
would span a total of about 4,000 square feet
between two separate areas of the filling line.
 The platform’s structures had to be made of
galvanized steel to keep them corrosion resistant.
“The hot-fill process involves pasteurizing the
product, resulting in a very humid atmosphere, “
explains Graham. Along the edges of the platform, a
4-inch and 6-inch kick plate prevents particles from
falling down onto the open bottle area on the bottom
level.

44.  Fabrication of the structure took about 6 to 8 weeks
to complete. Installation was even quicker than
regular, non-food grade platforms. “Cubic Designs
uses a pre-built structure, which they design in
their plant, and then just bolt together at the
customer’s site,” says Graham. “This greatly
reduces the amount of metal fabrication, metal
shavings, etc. on the production floor. This also
allows for quicker assembly and less down time
needed for installation.” A few months later, Pepsi
hired an independent auditor to inspect the new line
(including the new platforms). They received very
favorable comments and a passing grade.
Results

45. Fixed-position
layout
Product
layout
Cell layout
Process
layout
Volume
Low High
VarietyLowHigh
Flow is
intermittent
Regular flow more important
Flow
becomes
continuous
Regularflowmorefeasible
Volume-variety relationship

46. Advantages and Disadvantages
Fixed
position
layout
Process
layout
Cell
layout
Product
layout
Disadvantages
Advantages
- Very high mix
and product
flexibility
- Product/customer
not moved or
disturbed.
- Very high unit cost.
- Scheduling space
and activities can be
difficult.
- High mix and
product flexibility
- Relatively robust
if in the case of
disruptions
Low utilization of
resources.
Can have very high
WIP
Complex flow.
- Good compromise
between cost and
flexibility
- Fast throughput.
- Group work can
result in good
motivation
Can be costly to
rearrange existing
layout
Can need more plant
and equipment
Low unit costs for high
volume
- Gives Opportunities
for specialization of
equipment
Can have low mix and
flexibility
Not very robust to
disruption
Work can be very
repetitive.
- High variety of
tasks for staff
- Easy supervision
of equipment of
plant
- Gives Opportunities
for specialization of
equipment

47. Conclusions
As we saw, the choice of which type of facility layout to
adopt can have a significant impact on the long-term
success of a firm. This decision. therefore should not be
made lightly but only after an in-depth analysis of the
operational requirements has been completed.
•A major issue to be addressed in facility layout decisions
in manufacturing is: How flexible should the layout be in
order to adjust to future changes in product demand
and product mix?
•Some have argued that the best strategy is to have
movable equipment that can be shifted easily from place
to place to reduce material flow time for near-term
contracts.

48. Contd.
 However while this is appealing in general the
limitations of existing buildings and permanently
anchored equipment and the general plant disruption
that is created make this a very costly strategy.
 In service systems particularly with multi-location
chains the study of layout has become extremely
important because the selected layout can be
replicated at hundreds or even thousands of facilities.
 Indeed a layout error in a fast-food chain has a more
immediate and generally a more far reaching impact
on profits than a layout error in a factory.