Facilities Planning and management by.ppt

Facilities Planning
From ideas to plans!

Facility location decisions pertains to the
choice of an appropriate geographical site
for locating various manufacturing & or
service facilities of an organization.
Plant location is the function of
determining location for a plant for
maximum operating economy &
effectiveness.

Need for the selection of location:
• When business is newly started.
• Existing unit has outgrown its original
facilities.
• Establishment of branches
• Lease expires
• To reduce manufacturing cost
• Other social or economic reasons.

21st
century:
Globalisation of operations:
Regulatory issues
Factor advantage
Expanding markets
Improvements in transportation &
communication facilities
Reduction of wage differentials between
regions
Mobility of workers & management
Improvements in construction methods
&designs

Errors in selection:
Lack of thorough investigation &
consideration of factors involved.
Personal bias
Reluctance of executives to move from
traditional home ground to new locations
Moving to congested areas
Improperly located
Choice of community with low cultural &
educational standards

Factors affecting location decisions:
Market related issues:
Market for products & services
Raw material availability
No. & proximity of suppliers
Availability of skilled labors
Quality of infrastructure.

Cost related issues:
Wage rate
Transportation costs
Taxes & tariff issues
Regulatory & policy measures:
Govt. & economic stability
Quality of legal & other institutions
Trading blocks & trading agreements

Other issues:
Culture
Climate
Quality of life
Steps in location decision:
1)Deciding on domestic or international
location
2)Selection of region
Availability of raw materials
Nearness to market

Availability of power
Transport facilities
Suitability of climate
Government policy
Competition between states
3) Selection of community
Availability of power
Civic amenities for workers
Existence of complementary & competing
industries

Finance & research facilities
Availability of water & fire- fighting
facilities
Momentum of an early start
Personal factors
4) Selection of the site:
Soil, size & topography
Disposal of waste
Good scenery

Village, Suburban or city site:
rural site:
Land at cheaper rates
Spacious layout available
Low wages for unskilled labors
High wages for skilled labors
Fewer labor trouble

Avoidance of danger from fire & other
hazardous things
Avoidance of undesirable neighbors
Absence of restrictions on smoke &
disposal of waste.
Lack of supply of skilled workers
Lack of civic amenities for employees
Lack of transport facilities

Urban site:
Good transportation facilities
Skilled Labour
Municipal services for water, sewage
disposal
Technical assistance
Outsourcing
Large local market
High advertising value

Facility planning layout:
Layout planning in manufacturing &
services organizations deals with the
physical arrangement of various resources
that are available in the system, with an
objective to improve the performance of
the operating system, thereby providing
better customer service.
Layout planning is determining the
best physical arrangement of resources
within a facility

Objectives of good layout:
Provide enough production capacity
Reduce material handling costs
Reduce congestion that impedes the
movement of people or material
Reduce hazards to personnel
Utilize labor efficiently
Increase employee morale
Reduce accidents
Utilize available space efficiently &
effectively

Provide for volume & product flexibility
Provide ease of supervision
Facilitate coordination & communication
Provide for employee safety & health
Allow ease of maintenance
Allow high machine/equipment utilization
Improve productivity

Factors influencing facility layout:
Materials
Product
Worker
Machinery
Type of industry
Location
Managerial policies

Principles of layout:
Principle of minimum travel
Principle of sequence
Principle of usage
Principle of compactness
Principle of safety & satisfaction
Principle of flexibility
Principle of minimum investment

Types of Layouts
Process layouts / functional / job shop layout
Product layouts / line processing / flow line
layout
Fixed-Position layouts/static layout
Cellular manufacturing layouts/group technology
layout
Hybrid layouts / combination layout

Process Layouts
In this type of layout the machines of a similar
type are arranged together at one place. This
type of layout is used for batch production. It is
preferred when the product is not standardized
and the quantity produced is very small.

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 labour 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

Product Layouts
 the machines and equipments are
arranged in one line depending upon the
sequence of operations required for the
product. It is also called as line layout.
 without any backtracking or deviation
the output of one machine becomes input
of the next machine.
It is used for mass production of
standardized products.

Disadvantages of Product layout:
Higher initial capital investment in special
purpose machine (SPM)
High overhead charges
Breakdown of one machine will disturb the
production process.
Lesser flexibility of physical resources.



Advantages of Product layout:
 Low cost of material handling, due to
straight and short route and absence of
backtracking
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

Hybrid Layouts
Combine elements of both product & process
layouts
Maintain some of the efficiencies of product
layouts
Maintain some of the flexibility of process
layouts
Examples:
Group technology & manufacturing cells
Grocery stores

Comparison of Product vs. Product Layouts
Process Layouts Product Layouts
Products: large #, different small # efficiently
Resources: general purpose specialized
Facilities: more labor intensive more capital intensive
Flexibility: greater relative to market lower relative to market
Processing slower faster
Rates:
Handling costs: high low
Space requirements: higher lower

FIXED POSITION OR LOCATION
LAYOUT:
Fixed position layout involves the
movement of manpower and machines to
the product which remains stationary.
Example : locomotives, ships, boilers,
generators, wagon building, aircraft
manufacturing, etc.

Advantages of Fixed position layout:
The investment on layout is very small.
The layout is flexible as change in job
design and operation sequence can be
easily incorporated.
 Adjustments can be made to meet
shortage of materials or absence of
workers by changing the sequence of
operations.

Disadvantages of Fixed position
layout:
 As the production period being very long
so the capital investment is very high.
Very large space is required for storage of
material and equipment near the product.
As several operations are often carried
out simultaneously so there is possibility of
confusion and conflicts among different
workgroups.

Facilities Planning and management by.ppt

More Related Content

Similar to Facilities Planning and management by.ppt (20)

Recently uploaded (20)

Facilities Planning and management by.ppt