UNIT-3

Plant Layout/ Facility Layout

 Arrangement of various facilities within the area of the site selected

 Plant layout involves relative allocation of adequate spaces at the appropriate places
for equipment, workers, materials other supporting activities and customers in service
industries
 The objective behind the arrangement of work areas is to produce most economically,
to design service effectively and to provide safe and good physical environment for
workers and customers.
 Thus, plant layout is an effective physical location or configuration of different
departments, machines, equipment and services of an organization used to create
product or provide service in efficient and economic manner.
 It is the process of determining the systematic arrangement of facilities and equipment
capable of satisfying and anticipating demand with respect to quantity, quality and
timing at lowest cost.
 It requires meaningful integration of all the elements of conversion process, like men,
machine and materials, conveniences and services.
 It refers to the arrangement of machines, departments, workstations, storage areas,
aisles, and common areas within an existing or proposed facility/plant
 It begins with the design of the factory building and goes to the location and
movement of a worktable.

Arrangement of –

 Machinery
 Equipment
 Other industrial facilities
 Achieving Quick production at least cost.

Objectives of good plant layout:

 Decrease Material handling costs.

 Decrease Movement of people and material
 Decrease Hazards to personnel
 Decrease Accidents
 Increase Production capacity
 Increase labour efficiency
 Increase Employee morale
 Increase Space utilization
 Increase Ease of Supervision and Maintenance

Factors affecting/influencing Plant Layout:

 Human factor

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  Nature of material to be used
 Machines- Their types and sizes
 Movement of man and material
 Building layout
 Service factors
o Maintenance of plant
o Quality control
o Inspection of product
o Control of wastage
o Scheduling
o Material handling
o Dispatching
o Fire protection
o Facilities for employees

Six basic principle of Plant Layout:

 Integration principle
All other things being equal, best layout is one which integrates men, materials and
machines in the best possible manner
 Flow principle
All other things being equal, best layout is one which provides for smooth and
uninterrupted flow of men and materials
 Space Utilization principle
All other things being equal, best layout is one which makes best use of available
cubic space.
 Minimum movement principle
All other things being equal, best layout is one which results in minimum movement
of men and material in the plant
 Safety and comfort principle
All other things being equal, best layout is safe and comfortable for employees
working in plant
 Flexibility principle
All other things being equal, best layout provides flexibility

Plant layout procedure:

1. Information collection
2. Analysis and co ordination
3. Choice of machinery and equipment
4. Selection of material handling system
5. Sketching the plant on the plot
6. General flow pattern
7. Individual work stations design

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 8. Assembly of the individual work station layout
9. Storage space required
10. Preparation of flow diagrams for work stations
11. Planning and locating service areas
12. Making master layout
13. Checking final layout
14. Approval of layout

Basic type of Plant Layout:

1. Fixed position Layout

2. Process Layout
3. Product Layout
4. Combination Layout

Fixed position Layout:

 It is a type of layout where the job remains in a fixed position and all its accessories
such as materials, machinery, equipment and workers, etc. are brought to
workstations.
 Usually this is needed when the job is bulky and its transportation is not desirable or
possible.
 Example of this type of layout occurs in heavy construction (dams, bridges etc.),
shipbuilding, aircraft-assembly and railway wagon industry

Advantages:

1. Less material handling for bulky or heavy job.

2. Better utilization of available space.
3. Minimum movement of men during working.
4. Safe working condition for workers.
5. Flexible to change in the product design and its process.

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Disadvantages:

1. The utilization of machines and men is less

2. Special purpose machines cannot be used, so the process is slow.
3. Inspection is difficult.
4. Production scheduling and control is difficult to automate.

Process Layout:

 A process layout is the arrangement of facilities and equipment in group according to

the function performed.
 In this type of layout, similar types of machines or similar types of operations are
grouped together and put in one department.
 For example, all grinding machines may be at one place, all drilling machines at
another place and all turning machines at yet another place.
 It means that all the machines have been arranged according to their functions.
 It is preferred for the industries engaged in job order type product.

Advantages:

1. High utilization rates for human resource and equipment

2. Better product quality
3. Workers in one section are not affected by the nature of the operation carried out in
other section
4. Investment is lower in equipment due to the flexibility and interchange ability of
general purpose machines
5. Any breakdown of one machine does not affect production

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Disadvantages:

1. High production cost per unit due to the need for special setup and processing
requirements
2. Large in-process inventories are required
3. More floor area are required for layout
4. Production control is difficult
5. It takes relatively long processing times
6. Material handing process is difficult to be automated
7. It needs flexible material-handling equipment (fork-lift trucks, cranes, etc.)
8. Scheduling and control is complex since each order must be handled individually

Product Layout:

 A product layout is the arrangement of facilities and equipment in the same sequence
as that of the operations needed to complete each unit of the product or service
offered.
 Successive units follow the same path through the system.
 This type of layout is very popular in mass production, where only one type of
product is manufactured.

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  Examples of product layout applications in the manufacturing are automobile parts
industries, chemical industries, T.V. set manufacturing, refrigeration manufacturing,
bottling plants, etc.
 The line need not be straight.
 It could be any curve to suit the available area.

Advantages:

1. Material handling time and costs can be reduced through the use of mechanized or
automated devices (conveyors, chutes, etc.)
2. In-process inventory requirements are reduced due to smooth and relatively fast
movement of units through the various processing stages
3. Inspection of unit is easy
4. Space utilization is increased
5. Planning, scheduling and control of operations are simplified

Disadvantages:

1. Lack of flexibility
2. Breakdown of any one of the several machine on a production line usually forces
idleness on the entire line, with costly delays, high maintenance cost or both
3. All the machines cannot be used to their maximum capacity at a time
4. Trained workmen are required to operate special purpose machines

Combination Layout:

 These days most of the manufacturing industries have adopted this type of layout.
 A combination of process and product layout combines the advantages of both type of
layout.

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  In this layout system, a set of machinery or equipment is grouped together in a section
and each set of machines or equipment is used to perform similar kind of operations
to produce a family of component.
 This layout is suitable where an item is being made in different types and sizes.
 In such cases, machinery is organised in a process layout but the process grouping is
then arranged in a sequence to manufacture various types and sizes of product.

Advantages:

1. Production planning and control is easy

2. Work flow is continuous and smooth
3. Inspection is easier
4. Less floor area is required
5. Better utilization of machines is achieved.
6. Overall cost of production is less.
7. Material handling cost is low

Disadvantages:

1. All machines cannot be used to their maximum capacity leading to poor facility
utilization and higher capital cost
2. Trained workers are required for this layout
3. Routing and scheduling is difficult
4. It needs more frequent inspection

Sequencing and Scheduling:

 Sequencing and scheduling are terms that are used interchangeably to denote/notify
the prioritization of production items or the assigning of jobs to the machines in a job
shop.
 Scheduling is a part of planning function of an operations manager and deals with the
allocation of the available resources over time to perform a collection of activities.
 Sequencing is the processes of prioritization of the activities on the basis of certain
priorities.
 Routing, dispatching, expediting, and assigning jobs to the machines are the
additional activities involved in scheduling.
 Once the jobs are assigned to the machines, the sequencing of activities takes place,
i.e. decisions are taken regarding which job is to be taken first, which is to be taken
second, and so on.

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Johnson’s Algorithm or Johnson’s Rule:

 Consider a situation where two men A and B, are standing in a queue in a

supermarket. B has only 2 items in his basket, whereas A has 25 items in his basket
and standing in front of B in the queue.
 If the queue follows the principle of first come first serve (FCFS) then B’s waiting
time is at least 5 minutes.
o The average waiting time for two persons will be {0 for A + 5 for B}/2=2.5
minutes
 Now, suppose A allows B to make payment before him (A). In this case it might take
1 minute until B’s transaction is completed. Then,
o The average waiting time for two persons will be {0 for B + 1 for A}/2 = 0.5
minutes.

This principle is used in scheduling the jobs on machines, with the job having the least
processing time preferred over the job with more processing time. This process is repeated
until all the jobs have been allocated.

Steps involved for Assignment Model:

Step 1: Determine the opportunity cost table

i. Subtract the lowest entry in each row of the given cost table from all entities in that
row (row reduction)
ii. Subtract the lowest entry in each column of the table obtained in (i) from all numbers
in that column (column reduction)

Step 2: Determine whether an optimal assignment can be made

i. Cross out all zeros with the minimum number of horizontal or vertical lines.
ii. If the number of lines is equal or greater than the number of rows or columns then an
optimal assignment can be made. If not, go to Step 3.

Step 3: Revise the total opportunity cost table

i. Select the smallest number in the table not covered by a straight line and subtract this
number from all numbers not covered by a straight line.
ii. Add this same number to the number lying at the intersection of any two lines. Repeat
step 2.
 In case optimal assignment can be made, select the row or column with only one zero in it
and make an assignment to that zero.
 Delete the row and column to which an assignment is made
 Repeat this procedure till all assignments are made

In case there are more than one zeros in a row and column and there is no row or column
with a single zero, make an assignment arbitrarily to a zero cell and produced. This indicates
that multiple solutions exist. This model is can be used to assign n jobs to n machine.

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Example 1: Cost for performing a Job on different machines are given

Machines 1 2 3 4
Jobs
A 20 36 31 17
B 24 32 40 12
C 22 40 38 18
D 36 39 35 16
How should the machines be loaded?

Solution:

Machines 1 2 3 4
Jobs
A 20-17=3 36-17=19 31-17=14 17-17=0
B 24-12=12 32-12=20 40-12=28 12-12=0
C 22-18=4 40-18=22 38-18=20 18-18=0
D 36-16=20 39-16=23 35-16=19 16-16=0

Machines 1 2 3 4
Jobs
A 20-17=3-3=0 36-17=19-19-0 31-17=14-14=0 17-17=0
B 24-12=12-3=9 32-12=20-19-1 40-12=28-14=14 12-12=0
C 22-18=4-3=1 40-18=22-19=3 38-18=20-14=6 18-18=0
D 36-16=20-3=17 39-16=23-19=4 35-16=19-14=5 16-16=0

Machines 1 2 3 4
Jobs
A 20-17=3-3=0 36-17=19-19-0 31-17=14-14=0 17-17=0
B 24-12=12-3=9 32-12=20-19-1 40-12=28-14=14 12-12=0
C 22-18=4-3=1 40-18=22-19=3 38-18=20-14=6 18-18=0
D 36-16=20-3=17 39-16=23-19=4 35-16=19-14=5 16-16=0

Machines 1 2 3 4
Jobs
A 20-17=3-3=0 36-17=19-19=0 31-17=14-14=0 17-17=0+1=1
B 24-12=12-3=9- 32-12=20-19=1- 40-12=28- 12-12=0
1=8 1=0 14=14-1=13
C 22-18=4-3=1- 40-18=22-19=3- 38-18=20-14=6- 18-18=0
1=0 1=2 1=5
D 36-16=20-3=17- 39-16=23-19=4- 35-16=19-14=5- 16-16=0
1=16 1=3 1=4

Machines 1 2 3 4
Jobs
A 20-17=3-3=0 36-17=19-19=0 31-17=14-14=0 17-17=0+1=1

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 B 24-12=12-3=9- 32-12=20-19=1- 40-12=28- 12-12=0
1=8 1=0 14=14-1=13
C 22-18=4-3=1- 40-18=22-19=3- 38-18=20-14=6- 18-18=0
1=0 1=2 1=5
D 36-16=20-3=17- 39-16=23-19=4- 35-16=19-14=5- 16-16=0
1=16 1=3 1=4

Machines 1 2 3 4
Jobs
A 0 0 0 1
B 8 0 13 0
C 0 2 5 0
D 16 3 4 0

Machines 1 2 3 4
Jobs
A 0 0 0 1
B 8 0 13 0
C 0 2 5 0
D 16 3 4 0

Machines 1 2 3 4
Jobs
A 0 0 0 1
B 8 0 13 0
C 0 2 5 0
D 16 3 4 0

Machines 1 2 3 4
Jobs
A 0 0 0 1
B 8 0 13 0
C 0 2 5 0
D 16 3 4 0
The cost of the assignment is as follows:

Job A to machine 3 31

Job B to machine 2 32

Job C to machine 1 22

Job D to machine 4 16

Total cost = 101

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Priority Rules:

This is applicable for scheduling of “n” jobs on one machine.

1. First Come First Served (FCFS): Jobs are run in the order in which they are
received
2. Shortest Operation Time (SOT) or Shortest Processing Time (SPT): Run the job
with the shortest completion time first, next shortest second and so on.
3. Due Date (DDATE): Run the Jobs in the order of their due dates starting with the job
with the earliest due date first.
4. Slack Time Remaining (STR): It is the difference between the time remaining to due
date and the remaining processing time. The jobs having the least slack time
remaining scheduled first.

𝑆𝑇𝑅 = (𝐷𝑢𝑒 𝑑𝑎𝑡𝑒 − 𝑇𝑜𝑑𝑎𝑦 ′ 𝑠 𝑑𝑎𝑡𝑒) − 𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑖𝑛𝑔 𝑇𝑖𝑚𝑒

5. Critical Ratio (CR): It is the ratio between the time remaining and the work
remaining. The job with the least critical ratio is scheduled first.

𝐷𝑢𝑒 𝑑𝑎𝑡𝑒 − 𝑇𝑜𝑑𝑎𝑦 ′ 𝑠 𝑑𝑎𝑡𝑒

𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑅𝑎𝑡𝑖𝑜 =
𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑖𝑛𝑔 𝑇𝑖𝑚𝑒

6. Last Come First Served (LCFS): When jobs arrive, they are put on top of the stack.
The operator usually picks up the job on top to run first.
7. Longest Processing Time (LPT): Jobs are run as per their processing time, the one
with the longest processing time being run first.

Example 2: Five orders have been received at the beginning of the week. Scheduling data is
given in Table below:

Jobs Processing time (days) Due date

A 2 7
B 4 6
C 3 5
D 1 2
E 6 6
All orders are to be processed only on one machine. Schedule the jobs according to different
rules and compare them.

Solution:

By First Come First Served

Jobs Processing time Due date Start date Finish date

A 2 7 0 2
B 4 6 2 6
C 3 5 6 9
D 1 2 9 10
E 6 6 10 16

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Jobs A and B are completed on time. C, D and E are delayed.

0 + 0 + 4 + 8 + 10
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑒𝑙𝑎𝑦 = = 𝟒. 𝟒 𝒅𝒂𝒚𝒔
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By Shortest Operation Time

Jobs Processing time Due date Start date Finish date

D 1 2 0 1
A 2 7 1 3
C 3 5 3 6
B 4 6 6 10
E 6 6 10 16
Jobs D and A are completed on time. Jobs C, B and E are delayed.

0 + 0 + 1 + 4 + 10
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑒𝑙𝑎𝑦 = = 3 𝑑𝑎𝑦𝑠
5
By Due Date

Jobs Processing time Due date Start date Finish date

D 1 2 0 1
C 3 5 1 4
B 4 6 4 8
E 6 6 8 14
A 2 7 14 16
Jobs D and C are completed on time. Jobs B, E and A are delayed.

0+0+2+8+9
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑒𝑙𝑎𝑦 = = 𝟑. 𝟖 𝒅𝒂𝒚𝒔
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By Slack Time Remaining

𝑆𝑇𝑅 = (𝐷𝑢𝑒 𝑑𝑎𝑡𝑒 − 𝑇𝑜𝑑𝑎𝑦 ′ 𝑠 𝑑𝑎𝑡𝑒) − 𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑖𝑛𝑔 𝑇𝑖𝑚𝑒

Let us assume that Today’s date is 0

STR for A = (7 − 0) − 2 = 5

STR for B = (6 − 0) − 4 = 2

STR for C = (5 − 0) − 3 = 2

STR for D = (2 − 0) − 1 = 1

STR for E = (6 − 0) − 6 = 0

Jobs Processing time Due date Start date Finish date

E 6 6 0 6
D 1 2 6 7
B 4 5 7 11

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 C 3 5 11 14
A 2 7 14 16
Job E is completed on time. All other Jobs are delayed.

0+5+6+9+9
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑒𝑙𝑎𝑦 = = 5.8 𝑑𝑎𝑦𝑠
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By Critical Ratio

𝐷𝑢𝑒 𝑑𝑎𝑡𝑒 − 𝑇𝑜𝑑𝑎𝑦 ′ 𝑠 𝑑𝑎𝑡𝑒

𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑅𝑎𝑡𝑖𝑜 =
𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑖𝑛𝑔 𝑇𝑖𝑚𝑒
7−0
CR for A = = 3.5
2

5−0
CR for B = = 1.25
4

5−0
CR for C = = 1.67
3

2−0
CR for D = =2
1

6−0
CR for E = =1
6

Jobs Processing time Due date Start date Finish date

E 6 6 0 6
B 4 5 6 10
C 3 5 10 13
D 1 2 13 14
A 2 7 14 16
Job E completed on time. All other jobs are delayed.

0 + 5 + 8 + 12 + 9
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑒𝑙𝑎𝑦 = = 𝟔. 𝟖 𝒅𝒂𝒚𝒔
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By Last Come First Served

Jobs Processing time Due date Start date Finish date

E 6 6 0 6
D 1 2 6 7
C 3 5 7 10
B 4 5 10 14
A 2 7 14 16
Job E is completed on time. All other jobs are delayed.

0+5+5+9+9
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑒𝑙𝑎𝑦 = = 𝟓. 𝟔 𝒅𝒂𝒚𝒔
5

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 By Longest Process Time

Jobs Processing time Due date Start date Finish date

E 6 6 0 6
B 4 5 6 10
C 3 5 10 13
A 2 7 13 15
D 1 2 15 16
Job E is completed on time. All other Jobs are delayed.

0 + 5 + 8 + 8 + 14
𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑒𝑙𝑎𝑦 = = 𝟕 𝒅𝒂𝒚𝒔
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Hence the least average delay is achieved if we schedule as per the shortest operation time.

Steps for n jobs two machines or stations:

Step 1: Examine the columns for Machine 1 and 2 and find the smallest value.

Step 2: If this minimum value falls under Machine 1, schedule this job first and if it falls
under Machine 2, schedule this job first.

Step 3: Cross out the job already schedule and repeat Step 1. In case of a tie choose any job
amongst the tied jobs. That means there are alternative solutions available.

Example 3: Five jobs have to be processed on two machines. Each job must first process on
Machine 1 and then Machine 2. Time taken on each machine in hours for the jobs is given
below in the table:

Job Machine 1 Machine 2

A 5 2
B 1 6
C 9 7
D 3 8
E 10 4
Find the sequence which gives the minimum elapsed time.

Solution:

Order 1 2 3 4 5
Job No. B D C E A

Job Machine 1 Machine 2

Time In Time Out Idle Time In Time Out Idle
B 0 1 0 1 7 1
D 1 4 0 7 15 0
C 4 13 0 15 22 0
E 13 23 0 23 27 1
A 23 28 2 28 30 1

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 Total = 2 Total = 3
All jobs will be completed in 30 hours. Machine A will be idle for 2 hours after all jobs are
completed on it. While machine B will be idle for 3 hours, as it has to wait for 1 hour for the
first job, and 1 hour each for fourth and fifth job.

Steps for n jobs two machines or stations Different Sequence:

Step 1: Schedule jobs which are to move from Machine 1 to Machine 2 first on Machine 1.
Simultaneously jobs which are to be moved from Machine 2 to Machine 1 are sequenced first
on Machine 2.

Step 2: Jobs to be done only on either of the machines are schedule next.

Step 3: Jobs requiring processing on both machines are then scheduled for processing on the
later machine as required.

Example 4: The table below shows the processing time of jobs in hours and sequence in
which they are to be processed on the two machines.

Job Time on Machine 1 Time on Machine 2 Processing Sequence

A 5 3 1-2
B 2 - 1
C 3 2.5 1-2
D - 3.5 2
E 4 1.5 1-2
F 1 2 2-1
G 2 2.5 2-1
H - 1 2
J 3 - 1
Find the sequence which gives the minimum elapsed time.

Solution:

Job Machine 1 Job Machine 2

Time in Time out Idle Time in Time out Idle
A 0 5 0 F 0 2 0
C 5 8 0 G 2 4.5 0
E 8 12 0 D 4.5 8 0
B 12 14 0 H 8 9 0
J 14 17 0 A 9 12 0
F 17 18 0 C 12 14.5 0
G 18 20 0 E 14.5 16 4
All the jobs will be completed in 20 hours. Machine 2 will be idle for 4 hours after all jobs
have been finished on it.

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Break Even Analysis:

 Break Even point is that level of production where costs are equal to revenues.
 The costs can be broken into fixed costs and variable costs
 Fixed costs are independent of the level of production, the variable costs are
dependent on the level of production
 Variable cost is expressed as cost per unit

Example 5: A sports goods firm intends to set up a unit to produce tennis rackets. It is
considering sites A, B and C for the purpose. Cost data for the producing sites are given
below in the table:

Site Fixed cost Variable cost

A Rs. 50,000 Rs. 135
B Rs. 1,00,000 Rs. 110
C Rs. 1,20,000 Rs. 120
If the selling price is Rs. 300 per racket and the annual demand is 3000, which site should be
recommended?

Solution:

Revenue at all the sites is same = 300 × 3000 = 𝑅𝑠. 9,00,000

Costs at location A

Fixed cost = 50,000

Variable cost = 135 × 3000 = 4,05000

Total cost = 4,55,000

Profit = 9,00,000 − 4,55,000 = 4,45,000

Costs at location B

Fixed cost = 1,00,000

Variable cost = 110 × 3000 = 3,30,000

Total = 4,30,000

Profit = 9,00,000 − 4,30,000 = 4,70,000

Costs at location C

Fixed cost = 1,20,000

Variable cost = 120 × 3000 = 3,60,000

Total = 4,80,000

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 Profit = 9,00,000 − 4,80,000 = 4,20,000

As the profit at location B is the highest, factory should be placed at location B.

Assignment Problem

Five men are available to do five different jobs. From past records, the time (in hours) that
each man takes to do each job is known and given in the following table:

Job I II III IV V
Men
A 2 9 2 7 1
B 6 8 7 6 1
C 4 6 5 3 1
D 4 2 7 3 1
E 5 3 9 5 1
Find the assignment of men to jobs that will minimize the total time taken

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