ppt of Intro to production management and plant layout under engineering economics and management

1. Introduction to production
management and plant layout

2. Definition of Production
Management:
 “Production management is the management of those resources
and activities of the business that are required to produce goods or
services for sale to customers at a profit.”
 The production management is one of the prime buisness activites.
It involves the value addition through converting raw materials into
finished goods with step by step processing.

3. Objectives:
 To locate the unit at appropriate location so that transportation cost
of inputs and outputs of the materials and travel cost of employees
are reduced.
 To develop an ideal plant layout to minimise internal transport cost.
 To adopt appreciate cost effective production Technology.
 To select appropriate machines show that the assets turnover can
be maximized.
 To adopt appropriate quality control resulting into cost control and
cost reduction.

4. Functions:
• production planning
• Routing
• Loading and scheduling
• Dispatching
• Follow up or expenditing

5. PLANTLAYOUT:
• “Plant layout ideally involves allocation of space and arrangement
of equipment in such a manner that overall operating costs are
minimized”.

6. Objectives:
• Efficient utilization of available floor space.
• To ensure that work proceeds from one point to another point
without any delay.
• Provide enough production capacity.
• Reduce material handling costs.
• Reduce hazards to personnel.
• Utilize labor efficiently.

7. Types of Plant Layouts:
• Process layout
• Product layout
• Static or project layout
• Combined layout

8. Process layout:
•This type of plant layout is useful
when the production
process is organized in batches.
• Personnel and equipment to perform
the same function
are allocated in the same area.
• The different items have to move
from one area to another
one, according to the sequence of
operations previously
established.
•The variety of products to produce
will lead to a diversity of
flows through the facility.

9. 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

10. Fixed Position layout:
• In fixed-position layouts, the item
being worked on remains stationary,
and workers, materials, and
equipment are moved about as
needed.
• Fixed-position layouts are widely used
in farming, firefighting,road building,
home building, remodeling and repair,
and drilling for oil. In each case,
compelling reasons bring workers,
materials, and equipment to the
“product’s” location instead of the
other way around.

11. Combined layout:
• In many manufacturing
units, several products
are produced in repeated
numbers with no
likelihood of continuous
production, combined
layout is followed.
• E.g. Soap industry, all
inputs are almost
manufactured in separate
units vise glycerin, water
treatment, fragrance etc.

12. Factors affecting plant layouts
• Type of production
• production system
• scale of production
• type of Machines
• Availability of total floor area

13. Plant Location:
• 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.
• The ideal location is that which permits the lowest cost in the
production and distribution of a product or a service.

14. Factors affecting Plant Location:
• Raw materials availability
• Nearness to market
• Availability of labour
• Fuel and power
• Transport facilities
• Personal factors
• Government policy
• Ethos of Locality