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DR MAHADEO GHADGE
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The performance of anorganization is considerably
affected by its location.
Location decision affect, most of thefixed costs as well as variable costs.
Therefore, the efficiency,
effectiveness, productivity &
profitability of the facility are also
affected by the location decision.
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Weber German Economist
Theory consider major two
important factor affectingindustrial location
Primary Factor (Regional factors)
Secondary factor (agglomerative
factor)
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TRANSPORTATION COST LABOUR COST
TRANSPORTATION COST Distance to be covered The weight to be transportedWeber classified raw material into two
broad categories1-Localised raw material2-ubiqities material
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Localized raw material available in specificregion . For example Cotton , Sugarcane ,Jute
Ubiquities material
Which are avaiableevery where for example .water ,sand
Localized material further classified as
Pure material- which do not lose the weight
in process Gross raw material-which lose weight in
process , for example aromatic compound
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Webers theory assume that
Certain labour centre's where cheap
& skilled labour available (Unlimited
supply of workforce)
If labour cost is not significant then
transportation cost play critical role inlocation decision
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Consider the possibility of morethan one location for an industry
For example
Paper Industry
Plant for pulp process near forest
Paper manufacturing unit, nearmarket
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Unreal ist ic & oversimp l i f ied-
Transportation cost other factor such
as road quality of goods are notconsidered
Unlimited labour supply that is not
possible Select ion o f factor is arbi t rary
Climatic condition, government policy
are not considered
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Availability of raw materialMarket
Labour supplyTransport & communication
Fuel & power
Government policyClimatic condition
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What Is Layout Planning?
Layout planning is determining the best
physical arrangement of resources within a
facility
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Why is layout planning important?
Eliminates unnecessary costs for space and
materials handling
Reduces work-in-process inventory Produces goods and services faster
Reduces distances that workers must travel
in the workplace
Improves communication and morale
Increases retail sales
Improves brand image
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Types of Layouts
Process layouts: Group similar resources together
Product layouts: Designed to produce a specific product,
or a small number of products efficiently
Hybrid layouts: Combine aspects of both process and
product layouts
Example: cellular layout
Fixed-Position layouts: Product is too large to move
Examples: building construction, shipyard Resources must be brought to where they are needed
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Process and Product Layouts
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Process Layouts
Used in project and batch manufacturing(intermittent processes)
Also used in department stores, offices,hospitals, and universities
Able to make or sell a variety of products Use general purpose resources Less automation than in product layouts Material handling costs per unit are higher than
in product layouts Scheduling production is more complex than in
product layouts
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Process Layout Example
Block layout for a sports medicine clinic
A
Radiology
B
Laboratory
C
Lobby &Waiting
D
ExaminingRooms
E
Surgery &Recovery
F
PhysicalTherapy
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Product Layouts
Used in assembly lines and continuous manufacturing
(repetitive processes)
A cafeteria line is a product layout
In manufacturing, product layouts are used to produce
one product, or a small group of products, efficiently Uses special purpose resources
More automation than in process layoutsMaterial
handling costs per unit are lower than in process
layouts
Scheduling production is simpler than in process
layouts
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FACTOR AFFECTING LAYOUT Nature of the product-Heavy product stationary layout; light product-line
layout Volume of product-Standard product mass production-line layout; variable
product variable quantity functional layout Type of industry process
1-intermittent functional layout
2- continuous- line layoutTypes of p roduct ion
1-job order 2- Batch production 3-mass production
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Types o f mach ine
Heavy machinery stationary layout;
Human factor &wo rk ing condi tion
Layout consider safety ,comforts rest
rooms
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OBJECTIVE OF LAYOUT
Minimization of material handling cost
Savings in shop floor space Increased in output & reduced work in process
Safety in working & reduced hazards
Increase productivity & minimum waste Smooth flow of processes
Reducing delays, manufacturing time & cutting
down maintenance cost
Overall integration of men, material, machines
& supporting activities.
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TYPES OF LAYOUTS
Layout manufacturing system is classified into
following categories Product or Line Layout
For example -automobile
Process or Functional Layout
For example bank , hospital ,workshop
Project or Fixed Position Layout
For example- aero plane manufacturing
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Material Handling
Material handlingis the function of
moving the right material to the right
place in the right time, in the right
amount, in sequence, and in the rightcondition to minimize production cost.
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Objectives of Material Handling
To reduce unit costs of production. Maintain or improve product quality
Reduce damage of materials
Promote safety and improve workingcondition
Enhanced productivity
Better use of material handling tools
Well-organized store keeping
Lower investment in work in process
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Overview of Material Handling Equipment
Material handling equipment includes:
Transport Equipment: industrial trucks,
conveyors, cranes and hoists.
Storage Systems: bulk storage, rack
systems, shelving and bins, drawer
storage, automated storage systems.
Identification and Tracking systems
E l f M d ti
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Example of Mass production
24
H d i A bl Li
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Hyundai Assembly Line
25
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Variety of products
and services
How much
Flexibility of the process; volume,mix, technology and design
What type and degree
Volume
Expected output
Job Shop
Batch
Repetitive
Continuo
Questions Before Selecting A
Process
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Dimension Job Shop Batch Repetitive Continuous
Job variety Very High Moderate Low Very low
Process
flexibility
Very High Moderate Low Very low
Unit cost Very High Moderate Low Very low
Volume of
output
Very low Low High Very high
Product Process Matrix
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ProductVariety
High Moderate Low Very Low
Equipmentflexibility
High Moderate Low Very Low
LowVolume
ModerateVolume
HighVolume
Very highVolume
Job
Shop
Batch
Repetitive
assembly
Continuous
Flow
Variety, Flexibility, & Volume
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Process Type High variety Low variety
Job Shop Appliancerepair
Emergency
room
Batch Commercialbakery
Classroom
Lecture
Repetitive Automotiveassembly
Automatic
carwash
Continuous
(flow)
Oil refinery
Water
purification
Product Process Matrix
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Product-Process Matrix
Flexibility-Quality Dependability-Cost
Continuous
Flow
Assembly
Line
Batch
Job
Shop
LowVolume
One of a
Kind
MultipleProducts,
Low
Volume
Few
MajorProducts,
Higher
Volume
High
Volume,High
Standard-
ization
Book
Writing
Movie
Theaters
Automobile
Assembly
Sugar
Refinery
Flexibility-
Quality
Dependability-
Cost
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Process Layout Example
Block layout for a sports medicine clinic
A
Radiology
B
Laboratory
C
Lobby &Waiting
D
ExaminingRooms
E
Surgery &Recovery
F
PhysicalTherapy
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Process Layout
Process Layout - work travels
to dedicated process centers
Milling
Assembly
& Test Grinding
Drilling Plating
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Process Layout
Gear
cutting
Mill Drill
Lathes
Grind
Heat
treat
Assembly
111
333
222
444
222
111
444
111 33311112222
222
3333
111
444
111
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Cellular Layouts
Cellular Manufacturing Layout in which machines are grouped into a cell that
can process items that have similar processingrequirements. A product layout is visible inside each cell.
Group Technology The grouping into part families of items with similar
design or manufacturing characteristics. Each cell isassigned a family for production. This limits theproduction variability inside cells, hence allowing for a
product layout.
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A Group of Parts
Similar manufacturing characters
Basic product family and machine data
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Product families
Machines
1 2 3 4 5 6 7 8
1 X X
2 X X X
3 X X X
4 X X X
5 X X X
6 X X
7 X X
8 X X X
Machines and product families reorganised into cells
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Product families
Machines
3 6 8 5 2 4 1 7
4 X X X
Cell A
1 X X
6 X X
3 X X X
Cell B
8 X X
2 X X X
5
Cell C
X X X
7 X X
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Dimension Process Cellular
Number of moves
between departments
many few
Travel distances longer shorter
Travel paths variable fixed
Job waiting times greater shorter
Amount of work in
process
higher lower
Supervision difficulty higher lowerScheduling complexity higher lower
Equipment utilization Lower? Higher?
Process vs. Cellular Layouts
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Cellular Manufacturing Layout
-1111 -1111
222222222 - 2222
Assembly
3333333333 - 3333
44444444444444 - 4444
Lathe
Lathe
Mill
Mill
Mill
Mill
Drill
Drill
Drill
Heat
treat
Heat
treat
Heat
treat
Gear
cut
Gear
cut
Grind
Grind
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Basic Layout Formats
Group Technology LayoutSimilar to cellular layout
Fixed Position Layout
e.g. Shipbuilding
Part Family W Part Family X
Part Family Y
Part Family Z
Assemble Y,W Assemble X,Z
Final Product
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