1. Plant Location & Plant Layout and 2. Production Management and Systems
Overview
* Plant Location
* Needs for selecting a suitable location
* Factors affecting/influencing location decisions
* Quantitative Method for Evaluation of Plant Location
* Plant Layout
* Objectives of good Plant Layout
* Advantages of Plant layout
* Principles of Plant Layout
* Types of Plant Layout
Plant Location
The location of plant is selected at the beginning stage of planning of establishing an industry. The necessary factors in the selection of plant location vary among industries and with changing technical and economic conditions.
* Some industries are located where raw materials are available.
* Some industries are located where labors are cheap and available.
* Some industries are located where raw materials and power supply are available.
Needs for selecting a suitable location
This arises due to two situations:
Factors affecting/influencing location decisions:
1. Availability of power like gas, electricity etc.
2. Availability of
Skilled manpower
Cheap manpower
3. Shipping and receiving facilities.
4. Easy communication and transportation system.
5. Availability of raw materials, water etc.
6. Presence of -
Airport
Sea-port
River-port
7. Presence of -
Banks
Insurance companies
Other financial institutions
8. Low cost of land.
9. Presence of -
Hospitals
Police stations
Fire brigades.
10. Pollution and noise free area.
11. Presence of market of the product.
12. Presence of –
Telephone exchange
Post office
Bus-stand
Hotels etc.
13. Market, mosque, churches, play-ground, cinema-hall, facilities.
14. Parking and public transportation facilities.
15. Favorable climatic and atmospheric condition.
Quantitative Method for Evaluation of Plant Location
1. Dimensional Analysis
2. Method Based On The Economics of Various Sites
Plant Layout
Plant layout may be defined as physical arrangement of industrial facilities. This arrangement includes the spaces needed for material movement, storage, supporting activities, services as well as operating equipment and personnel.
According to Moore, ‘‘Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment , storage space, material handling equipment and all other supporting services along with the design of best structure to contain all these facilities.’’
Objectives of good Plant Layout
A well designed plant layout is one that can be beneficial in achieving the following objectives:
• Proper and efficient utilization of available floor space
• Transportation of work from one point to another point without any delay
• Proper utilization of production capacity.
• Reduce material handling costs
• Utilize labour efficiently
• Reduce accidents
• Provide ease of supervision and control
• Provide for employee safety and health
• Allow easy maintenance of machines and plant.
• Improve productivity
Advantages of Plant layout
* Advantages to the worker
* Advantages to the management
* Advantages to manufacturing
* Advantages to production control
Principles of Plant Layout
* Principle Of Inegration
* Principle Of Minimum Distance
* Principle Of Cubic Space Utilization
* Principle Of Flow
* Principle Of Maximum Flexibility
* Principle Of Satisfaction And Safety
* Principle Of Minimum Handling
Types of Plant Layout
There are 3 classic types of plant layouts.
Those are:
1. Layout by fixed position.
2. Layout by product or line production.
3. Layout by process or layout by function.
1. Layout by fixed position
This type of layout is used in manufacturing huge aircrafts, ship vessels, pressure vessels etc.
Advantages:
Minimum capital investment.
Continuity of operations are ensured.
Less material movement.
Less production cost.
Disadvantages:
Machine & tools take more time to reach the work place.
Highly skilled workers are needed.
Complicated jigs and fixtures are required.
2. Layout by product/line production
A product/line layout is given below:
chemicals, sugar, paper, rubber, cement, automobiles, food processing and electronics etc.
Advantages of Product layout:
Smooth and continuous operations
Continuous flow of work
Lesser inventory and work in progress
Optimum use of floor space
Simple and effective inspection of work and simplified production control
Lower manufacturing cost per unit
Disadvantages of Product layout:
High overhead charges
Breakdown of one machine will disturb the production process
Lesser flexibility of physical resources.
3. Layout by Process/ Function
Advantages of Process layout:
• Lower initial capital investment is required.
• There is high degree of machine utilization, as a machine is not blocked for a single product
• The overhead costs are relatively low
• Breakdown of one machine does not disturb the production process.
• Supervision can be more effective and specialized.
• Greater flexibility of resources.
Disadvantages of Process layout:
• Material handling costs are high due to backtracking
• More skilled labor is required resulting in higher cost.
• Work in progress inventory is high needing greater storage space
• More frequent inspection is needed which results in costly supervision
2nd course
Production Management and Systems
Overview
* What is Production?
* Production system
* Objectives of Production Management
* Functions of Production Department
* Scope of Production Management
* Production Management Framework
* Relationship of Production With Other Functional Areas of Organization
* Relationship between Production and Marketing
* Problem areas of production
Production
Production is the system by which value is added some materials or services as per demands or requirements of consumers.
The most valuable features of production are:-
1. It should be a system and should have an objective
2. It should add some value to materials and services.
3. It should produce things or services as per demand or requirements of consumers, i.e. it should meet the requirements of consumers.
Production System
Inputs of an Operations System
# External
* Legal, Economic, Social, Technological
# Market
* Competition, Customer Desires, Product Info.
# Primary Resources
* Materials, Personnel, Capital, Utilities
Conversion Subsystem
* Physical (Manufacturing)
* Locational Services (Transportation)
* Exchange Services (Retailing)
* Storage Services (Warehousing)
* Other Private Services (Insurance)
* Government Services (Federal)
Outputs of an Operations System
Direct
Products
Services
Indirect
Waste
Pollution
Technological Advances
Objectives of Production Management
The objectives of the production management is stated as:
“To produce goods or services of right quality and quantity at the predetermined time and pre-established cost”
So the objective of production management are related:
Right quality
Right quantity
Predetermined time
Pre-established cost (Manufacturing cost)
Intermediate objectives:
Machinery and equipment
Materials
Manpower
Supporting services
Functions of Production Department
* Convert available capital into physical resources(for production)
* Convert physical resources into saleable goods and services
Scope of Production Management
1. New product identification and design
2. Process design and planning
3. Facilities location and layout planning
4. Design of material handling system
5. Capacity planning
Production Management Framework
Relationship of Production With Other Functional Areas of Organization:
Problem areas of production:
The problem areas of production are –
* Location of plants.
* Layout of plants and work areas.
* Scheduling and allocation of resources.
* Equipment selection, maintenance & replacement.
* Inventory policies.
* Process design & control.
Work methods.
Quality and quantity control.
