PLANT LAYOUT & MAINTENANCE

MODULE 2
 PLANT LOCATION
• Plant – a place where man materials,
equipments, money, machines etc. are
brought together for manufacturing products
• Good location reduces cost of production and
thus increases profit
 FACTORS AFFECTING PLANT LOCATION

1. Nearness to raw materials

2. Nearness to market
3. Transport facilities
4. Availability of labour
5. Availability of power & fuel
6. Availability of water
7. Climate & atmospheric conditions
8. Land
9. Waste Disposal
10. Availability of capital
11. Community attitude
12. Social & Recreational facilities
13. Labour laws & taxation
14. Existence of related industries
15. Other factors
 PLANT LAYOUT
• Is the most effective arrangement of various
facilities and service departments of a plant to
accomplish greatest coordination and
efficiency of 4M – men, material, machines &
methods.
 Objectives of a good plant layout
1. Minimizing & effectively controlling material
handling and transportation.
2. Raw materials & semi-finished goods are
transferred from work station to another by
eliminating the points of congestions and
bottlenecks using line balancing
3. Proper allocation of spaces
4. Simplification of plant maintenance
5. Minimizing workers movements and waiting time
6. Proper designing of work station
7. Increased flexibility
8. Improve work method to obtain reduced
production time
9. Material movements at appropriate speed
with less cost
10. Increased productivity
11. Safe, improved & better working
environment
Sl.
Principle Description
No
Integration Combining facilities of production centers like labour,
1 machinery, raw materials, etc in reasonable and stabilised
manner
Utilisation of cubic Make use of floor space as well as ceiling height
2. space

Less movements and Minimising number of movements of workers and materials

material handlings
3.

Flexibility Change in product models should not cause any troubles in

4. changing production processes
Smooth & Avoid bottlenecks, congestion etc.
5. Continuous flow

Safe & Improved Well ventilated and dust free, odoir free etc,
environment
6.
 TYPES OF LAYOUT
1. Product Layout
2. Process Layout
3. Fixed Position Layout
4. Cellular Layout
1. PRODUCT LAYOUT
 PRODUCT LAYOUT
ADVANTAGES DISADVANTAGES
1. Low unit cost 1. Less machine utilisation
2. Reduced delays 2. Less flexible
3. Smooth, simple, logical direct 3. Single machine stoppage
flow stops line
4. Low material handling costs 4. Higher investment on
5. Less skilled personnel only equipments
required
6. Reduced inspection
7. Effective supervision
8. Less work-in-process
 Applications
• Used where volume of individual product is
very large
• Permits continuous material handling
• Dose not use same macihne or equipment
more than once
• Suitable for producing standardized products
• Useful when inspection is needed while
carrying out series of operations
PROCESS LAYOUT
 PROCESS LAYOUT
ADVANTAGES DISADVANTAGES
1. Better machine utilisation 1. Increased work-in-process
2. Highly flexible in allocating 2. Longer production line
machine/personnel 3. Increased material handling
3. Changes in 4. Critical delays can occur, if
product/process design part obtained from previous
can be incorporated easily machine is faulty.

4. Diversity of tasks for

personnel
 Applications
• Used when production volume of individual product is
less
• Mostly used in discontinuous production
• Permits continuous material handling by using
considerable amount of materials or products
employing mechanical methods
• It utilises same machine or equipment for 2 or more
different operations
• Produces numerous varieties of products mostly when
different products are ordered
FIXED LOCATION LAYOUT
 FIXED POSITION LAYOUT
ADVANTAGES DISADVANTAGES
1. Movement of material is 1. Skilled persons required
reduced 2. Greater work-in-process
2. Highly flexible 3. Personnel movements are
3. Promotes pride and quality increased
since an individual can
complete the whole job
 Applications
• Used when lesser items are to be produced
• Used when operations require only simple
machines and tools
• Helpful when labour skill is dependent on his
capability
• Useful when transferring cost of bulk amount
of material is high
CELLULAR TYPE
 CELLULAR LAYOUT
ADVANTAGES DISADVANTAGES
1. Higher utilisation of 1. Requirement of flow
machines balance in each cell
2. Offers benefits of both 2. Greater labour skills
product and process layout
3. Smoother flow lines and
shorter travel distances are
expected
 Applications
• Used when different parts of products are made at
same place
• Suitable for producing various items of different shapes
& sizes
• Used in work areas having easily movable machine
tools
• Used when more items are produced in sequence but
not in bulk
• Used when the production of product does not depend
on its capacity
 QUANTITATIVE TECHNIQUES FOR OPTIMAL
DESIGN OF LAYOUTS
1. Process Flow Charts
2. Travel Chart
3. Correlation chart
4. Material movement chart
5. Layout analogues
6. Load path matrix
 MATERIAL HANDLING
• Art & science of moving, storing, protecting
and controlling of materials.
• Material Handling Equipments (MHE) refers to
various equipments such as carts, lifts, hand
trucks, conveyors, pallet jacks etc.
 PRINCIPLES OF MATERIAL HANDLING

 Least handling is best handling

 Standardisation of methods and equipments
result in reduction of costs
 MHE selected must be suitable for different
applications
 Specialised equipments should be minimum
 Volume dictates the method of handling
materials
 Length & number of moves of material should be
minimum
 Equipment capacities should never be exceeded
 All MHE should be analysed for improvement
possibilities by elimination, combination or
simplification.
 Selection of MHE is based on economics of operations
 Physical state of materials
 Utilise straight line flow whenever possible
 Materials should move continuously in production
line
 All material handling operations should follow a
defined method
 Short, irregular moves lend themselves to
manual materials handling
 Whenever possible materials should be pre
positioned for handling operations
 Whenever possible materials should be moved
in a horizontal plane or with the aid of gravity
 TYPES OF MHE
1. Material transportation Equipment –
Conveyors, cranes, racks
2. Positioning Equipment – Manual, Lift, Turn
table, hoists
3. Unit Load Formation Equipment - Pallet, Skid,
cartons
4. Identification & Control Equipment – Bar
codes, voice recognition etc.
 SELECTION OF MHE
 High Level – Conveyors, Cranes, Industrial
Trucks, Positioning equipments
 Intermediate level – Roller conveyors, Pallet
truck/jack
 Low Level – An ACME model X diesel powered
lift truck
 MAINTENANCE
 To ensure all equipments required for production is
operating at maximum efficiency at all times
 Objectives
- Minimise rate of deterioration
- Take decision on replacement or new investments
- Maximise operation efficiency
- Meet availability requirement for critical
equipments
- Increase Profit
 TYPES
1. Breakdown Maintenance
2. Preventive Maintenance
3. Scheduled Maintenance
4. Predictive Maintenance
 BREAKDOWN MAINTENANCE
• Not to do anything as long as everything is going well
• Done only after equipment fails
• Causes of breakdown
- Not replacing worn out parts
- Over running
- Lack of lube
- Poor electrical connections
- Neglecting cooling system
- operation by untrained personnel
 Advantages Disadvantages
• Minimal Planning • Failure is Highly
• Limited personnel only unpredictable
required • Can be extremely costly
• Poses safety risk to
employees and other assets
 PREVENTIVE MAINTENANCE
• Routine attention
• Preventive replacement
• Prevention of incipient failures
 • Advantages • Disadvantages
• Better product quality, • Very complex
fewer rejections • High initial
• Long-term repair costs
investment
are significantly lower
• Safety is provided
• Less overtime pay for
personnels
• Increased equipment
life
• Reduces late deliveries
 SCHEDULED MAINTENANCE
Advantages Disadvantages
• Inspection on a periodic • Moderate planning is
basis reduces risk of sudden required
failure • Parts are usually replaced
• Lower long term costs before its end of life
• Machine might fail even
before schedule
 PREDICTIVE MAINTENANCE
Advantages Disadvantages
• Reduced machine • High upfront cost
downtime & costs • Requires skilled labour
• Likelihood of failure is • Costly monitoring
reduced equipments required
• Improved reliability
 REPLACEMENT
• Reduced performance
• Altered requirements
• Obsolescence
 DEPRECIATION
• Measure of exhaustion of the effective life of
an asset from any cause during a given period
• It is the diminution in intrinsic value of asset
due to use and/lapse of time.
 NEED FOR PROVIDING DEPRICIATION

 To ascertain profit/loss
 To present a true and fair view of financial
position
 To ascertain real cost of production
 To comply with legal requirements
 To replace assets
 CAUSES OF DEPRECIATION
 Wear & tear
 Disuse
 Lack of proper maintenance
 Depletion
 Obsolescence
 Effluxion of time
 Time factor
METHODS FOR PROVIDING DEPRICIATION

 Straight Line or Fixed Installment method

 Written down value method or diminishing
balance method
 Depreciation/Sinking fund or Annuity method
 Service output method of depreciation
DETERMINATION OF ECONOMIC LIFE OF AN
ASSET
 It is an estimation of the period of time over
which an asset can reasonably be used to
generate income and be beneficial to the
company
 Also called as usual life
 Cost components include – Capital recovery
cost, operating & maintenance cost, total cost