Prepared by Bhakti Joshi June 27, 2014 Plant Layouts Prepared by Bhakti Joshi June 27, 2014

Class Activity Steel Iraq Indian Railways US Economy India’s Trade NHAI Bonds Excise Duty Natural Gas Stock markets Defense Industry Water Transport Agricultural Prices Banking Coal Mutual Funds Airlines Employment Consumer appliances Anti-dumping duties Cement Telecommunication Maharashtra Government Non-Government Organizations Mobile Phones Premium Goods

Class Activity Review Team 1 Team 2 Team 3 Team 4 Team 5 Team 6 Team 7 9 Teams Constraints: 1 copy of 5 Newspapers; (Time is given) 3 Teams hoarded on 1 Newspaper – Not Optimal Couple of Teams had 1 resource writing maximum articles – Not optimal (No teamwork) Many teams took photographs of articles, shared and collaborated newspapers with each other – Some teams had members not writing but allocating resources Proof-reading/editing as a critical process was missing in all teams (though many teams cross-checked for repetition of content) Team 1 Team 2 Team 3 Team 4 Team 5 Team 6 Team 7 Team 8 Team 9 Max 4 5 3 7 6 Min 2 1 Total 12 16 15 11 14 17 Newspapers #

Examples Chemist shop Tailor Shop Kiraana Restaurant College Grocery store in a mall Movie Theatres

Organisation’s context… There are plant layouts “…floor plan for determining arranging the desired machinery and equipment of a plant to permit the quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of the raw materials to the shipment of the finished products.”

Why Layouts? Efficiency in use of workers and space Minimisation of material handling costs Elimination of unnecessary movements of workers and materials Minimisation of production and customer time Elimination in delays Safety and improved working conditions Attainment of product/service quality

Types of Plant Layouts PROCESS PRODUCT FIXED POSITION CELLULAR COMBINATION

Process Layout: Example 1 Sewing Stitching Embroidery Output

Process Layout: Example 2 (Metal) # * * Lathe is a machine in which work is rotated about a horizontal axis and shaped by a fixed tool # Milling machine creates corrugated edges like in a coin Source: Google Images, Transtutors.com

Process Layout Also known as functional layout Evolved from handicraft production Grouping the same kinds of machines in one department

Process Layout – Key Principles Minimum distance between departments Departments in a sequence of operations Convenience for inspection and supervision

Process Layout: Advantages and Disadvantages Flexibility Utilisation Cost Excess material handling System Protection Difficulties in operations control Economies of Scale Is this layout meant for bulk orders or small orders? Incentives for Workers

Product Layout: Example Making a boat …? How was it made…? What were it’s input…? Could be taught…? Could it be replicated …?

Product Layout Also known as straight- line layout Sequence of workstations interconnected in one line Work done in small amounts

Product Layout – Key Principles Specific volume to be manufactured/serviced Stable product demand Product Standardisation Continuous material supply

Product Layout: Advantages and Disadvantages Simplicity Dull and repetitive Small Space Product variety is limited Optimum cost of materials Fault in one can affect all Is this layout cost-effective? Time efficiency High capital investments Limited skill sets Inelastic capacities

Fixed Position Layout: Example Paper boat versus the real one? Operations in hospitals? Manufacturing a plane

Fixed Position Layout: Example (Contd…)

Fixed Position Layout Job done at a fixed position The main equipment/s, heavy materials, sub-assemblies, etc., remain fixed Completion done by movement of machines, workers and tools

Fixed Position Layout: Advantages and Disadvantages Easy for immobile products High capital investments Flexibility Large storage spaces Possibly cost-effective Careful planning Feasible for large projects Can such layouts be discouraged completely?

Cellular Layout: Example 1 Source: http://www.teiminc.com/product_flow.htm

Cellular Layout: Example 2 Source: http://www.thefullwiki.org/Cellular_manufacturing

Cellular Layout Also known as functional layout Suitable for large variety of products in small volumes Based on Group Technology (GT) principle Parts with similar product design characteristics Parts with similar process characteristics

Cellular Layout: Advantages and Disadvantages Flexibility Requirement of skills Small batches of production Possibility of imbalances Higher machine utilisation Disadvantages of process and product layouts Workers’ empowerment What kind of businesses will require cellular layouts? Low cost of production

Combination Layout Hybrid Layout Mixture of three main layouts

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