PRODUCTION PLANNING,

PLANT LOCATION,

LAYOUT PLANNING & CONCEPTS

PRODUCTION MANAGEMENT

COMPILED BY

ANUJ PRATAPCSJMU KANPUR

What is production planning?

“Production planning may be defined as the direction and co-ordination of the firms material & physical facilities towards the attainment of pre-specified production goals in the most efficient available way.”

Samuel Eilah

OBJECTIVES OF PRODUCTION PLANNING

Minimize production timeMinimize costsUse resources efficientlyCustomers satisfactionPlanning tools

PROCESS OF PRODUCTION PLANNINGDetermination of targets

Collection of information

Interpretation of information

Development of Actual Plans

Execution plan or Putting Plan into Operation

Follow up Action

Market Requirements Product Research

Operation Method

Work Flow Analysis

Product Specification

Process R & D Process Design

Final Product DesignProduct Idea

Operation Design

Work Station Relation

Operation Control

Product Development

PRODUCTION PLANNING SYSTEM

YELLOW SEQUENCERED FEEDBACK

1-PRODUCT PLANNING SYSTEM

2-PROCESS PLANNING SYSTEM

PLANT LOCATION

WHAT IS PLANT LOCATION?

Plant location refers to the choice of region and the selection of a particular sitefor setting up a business or factory.

PLANT LOCATION

SELECTION OF REGION

SELECTION OF SITE

SELECTION OF LOCALITY

SELECTION OF COMMUNITY

LOCATIONAL ANALYSIS

a) Demographic Analysisb) Trade Area Analysisc) Competitive Analysisd) Traffic analysise) Site economics

Comparative Costs of Alternative Locations A & B

Costs Site A (Rs.) Site B (Rs.)

Cost of establishments

Land & Buildings 350000 230000

Equipment 60000 60000

Transport Facilities 20000 30000

Cost of operations

Materials, freight and carriage

34000 24000

Taxes and insurance 10000 7500

Labour 100000 70000

Water, power and fuel 10000 8000

Total 584000 429500

OBJECTIVES OF LOCALISATION

1) Maximum utilization of resources2) Increase in specialized labour & its maximum

utilization3) Encouragement to planned development4) Increase in per capita income5) To make product competitive by reducing cost of

production following cost of product6) To attain maximum profits

LAYOUT PLANNING & CONCEPTS

WHAT IS PLANT LAYOUT?

Plant Layout may be defined as a technique of deciding locality, machines, processes and plant services within the factory so as to achieve the greatest possible output of high quality at the lowest possible cost of manufacturing.

PRINCIPLES OF PLANT LAYOUT

1. Principle of overall integration2. Principle of minimum distance3. Principle of flow4. Principle of cubic space5. Principle of satisfaction & safety6. Principle of flexibility7. Principle of maximum utilization8. Principle of availability of physical &

other Facilities

BLUEPRINT OF PLANT LAYOUT

Procedure of Plant Layout

1) Determination of objectives2) Collection of required data3) Analysis & co-ordination of available data4) Determination of Layout Planning5) Design of workshop & building6) Development of techniques7) Cost estimation & arrangement of

Finance8) Services of experts

Features of ideal plant layout

Proper arrangement of water, air, light, gas & electricityEffective direction, inspection & supervisionMaximum production capacityMinimum & continuous flow of materialGood quality productionImplementation of rules & specializationHealthy working conditionBest & cheap production at minimum cost of productionAdopt latest equipment machines & technology.

PLANT LAYOUT

PRODUCT LAYOUT

PROCESS LAYOUT MIX LAYOUT STATIONARY

LAYOUT

Product Layout

WORKING STATION-1

WORKING STATION-2

WORKING STATION-3

WORKING STATION-4

INPUT OUTPUT

It is used for mass production and standardized products

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Process Layout

DEPARTMENT DEPARTMENT

DEPARTMENT DEPARTMENT

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Mixed Layout

A combination of Process & Product layout is known as Mixed Layout.

Manufacturing concerns where several products are produced in repeated numbers with no likelihood of continuous production, Mixed layout is followed.

Stationary Layout

Raw material

Machines

Labour

Aircraft Assembly

Finished Goods

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