Factory Layout

Definition

Plant layout refers to the arrangement of physical facilities such as machinery, equipment,
furniture etc. within the factory building in such a manner so as to have quickest flow of material
at the lowest cost and with the least amount of handling in processing the product from the
receipt of material to the shipment of the finished product.
In flow production the effective utilisation of plant may be limited by the flow of work from previous
operations. EqUipment requirements are thus determined not only by the policy regarding shift work,
but also by the parts ordering policy and factory layout. Plant Layout Objectives These are concerned
with minimisation of manufacturing cost while satisfying both technical and social requirements. They
can be defined as follows

(1) providing the planned factory output

(2) reducing total manufacturing time, thereby reducing work-in-progress and simplifying control

(3) minimisation of scrap due to handling

(4) ensuring safe operation

(5) providing high utilisation of capital equipment

(6) reducing total distances travelled by work-in-progress

(7) increasing operator output by installing a socially acceptable layout and reducing fatigue.

Also allow ease of maintenance, utilize labor efficiently and above all improve productivity.

These objectives are not usually mutually compatible and the layout selected will generally be a
compromise between the conflicting requirements. When proposing a layout it is necessary to conform
with statutory requirements concerning space, passageways and fire hazards. Also, adequate provision
must be made for nonproductive areas such as stores, factory offices, cloakrooms and toilets.

Choice of Layout

In process industries, the layout is usually dictated by the manufacturing sequence. In jobbing industries,
where one-off jobs are produced, plant layout decisions can be made only in relation to past experience
or an intuitive assessment of future demand. Where products are made in recurring batches, demand is
more predictable and a reasonably accurate assessment of work -load can be made. Under these
conditions three basic layouts are possible: process, flow and cellular. In mass production, quantities
often justify flow production both for component manufacture and assembly.

Process Layouts

In this type of layout machines of a similar type are arranged together at one place. E.g. Machines
performing drilling operations are arranged in the drilling department, machines performing casting
operations be grouped in the casting department. Therefore the machines are installed in the plants,
which follow the process layout.

These group the plant according to type, so in a typical mechanical engineering factory the main groups
may comprise automatic lathes, capstan lathes, presses, milling machines and grinding machines. Each
machine will manufacture a variety of parts, the tooling being reset between batches. Such layouts are
suitable where a large variety of small and medium-sized components are manufactured in batches.
Where a number of similar machines are used there is greater flexibility in scheduling jobs to machines,
and specialisation of setting and operating skills can be practised. The main disadvantages are due to the
relatively long distances that work batches must travel between operations and the length of the total
manufacturing cycle, giving rise to a high level of work-in-progress. It has been estimated that in most
factories using this layout pattern batches of work spend about 85 per cent of the manufacturing time
waiting between operations.

Advantages: Process layout provides the following benefits

a) Lower initial capital investment in machines and equipments. There is high
degree of machine utilization, as a machine is not blocked for a single product
b) The overhead costs are relatively low
c) Change in output design and volume can be more easily adapted to the output
of variety of products
d) Breakdown of one machine does not result in complete work stoppage
e) Supervision can be more effective and specialized
f) There is a greater flexibility of scope for expansion.
Disadvantages: Product layout suffers from following drawbacks
a. Material handling costs are high due to backtracking
b. More skilled labour is required resulting in higher cost.
c. Time gap or lag in production is higher
d. Work in progress inventory is high needing greater storage space
e. More frequent inspection is needed which results in costly supervision
Flow Layouts

These are used when a particular type of component, possibly with small variations, is required in
numbers that justify the grouping of machines or assembly stations in operational sequence so that
work can be passed without delay to the next operation. They are particularly suitable for expensive
components where work-in-progress should be minimised and space conserved. Although continuous
flow is desirable, long flow lines usually have provision for inter-operational buffer stocks, which help to
cushion variations in production rate. Work control is greatly facilitated and throughput time and hence
work-in-progress is significantly reduced. A major disadvantage is inflexibility, another is the
disorganisation resulting from breakdown of one of the machines on the line. On nonautomatic lines
there is also a loss of labour productivity, since it is impossible to achieve a perfect balance between the
work content of each station on the line. Labour efficiency can be improved by increasing inter-
operational buffer stocks, thereby allowing some operators to assist on other stages.

A logical development of flow layouts, used extensively for parts production in the car industry, is to
consolidate the layout into automated transfer lines operating on a fixed cycle. Transfer lines allow the
components to be passed from stage to stage automatically, thereby obviating external handling
between operations and reducing direct labour cost. The high capital cost of transfer lines, typically
about £10000 per stage, and their limited flexibility, restricts their use to high-output situations where a
continuing demand is expected.

Advantages:
a) Low cost of material handling, due to straight and short route and absence of
backtracking

b) Smooth and uninterrupted operations

c) Continuous flow of work
d) Lesser investment in inventory and work in progress
e) Optimum use of floor space
f) Shorter processing time or quicker output
g) Less congestion of work in the process
h) Simple and effective inspection of work and simplified production control
i) Lower cost of manufacturing per unit
Disadvantages: Product layout suffers from following drawbacks:
a. High initial capital investment in special purpose machine
b. Heavy overhead charges
c. Breakdown of one machine will hamper the whole production process
d. Lesser flexibility as specially laid out for particular product.

Cellular Layouts

Neither process nor flow layouts are particularly suitable for some relatively complex parts produced in
small or medium-sized batches. To make these parts economically the group technology concept has
been developed. By use of a suitable classification, as described, components having generally similar
machining operations are associated in family groups and machines are arranged in cells to enable
specific groups to be completely machined. When the operation sequence is essentially similar for all
the parts in the group a line layout is frequently adopted, but when the sequence is likely to vary a
group layout is more convenient, permitting greater flexibility in routing. The group technology
approach is not a standard procedure suitable for all applications: it simply suggests a new layout
philosophy that can be developed to meet the needs of individual factories. Advantages claimed for
cellular manufacture compared with process layouts are reduction of work-in-progress, improved
flexibility to meet changing priorities and reduction in throughput time. It also provides greater
autonomy for work groups in determining their manufacturing schedules, a greater sense of
involvement and the possibility of job enrichment by rotation of jobs and acquisition of setting skills. The
main disadvantage is the low utilisation of some machines in the cell, particularly when a line layout is
used.

Work Flow

In many factories that manufacture in batches combinations of all three types of layout can be found. A
number of algorithms has been proposed to assist in obtaining the best process layout, based generally
on minimum travel considerations or adjacency preference ratings, but their practical usefulness is
strictly limited.

The plan shape of the factory and access points for loading and unloading impose constraints on the
layout and siting of material stores or warehouses. Within these constraints the layout should allow, as
far as possible, for uni-directional work flows with a minimum of back-tracking. Decisions to facilitate
uni-directional flow can be made only by comparing the operation sequences for a large number of the
parts manufactured. On the basis of experience it is known that some processes are used predominantly
for first operations and others for subsequent operations.

When there is no clear-cut operation sequence on which to base a layout, travel charts can be used to
show the pattern of work in a factory I.e.
The Integrated Layout

Having decided on the floor area required for each section and the preferred sequence of sections, the
situation of each can be tentatively mapped on a floor plan of the factory, making provision for
gangways, materials handling equipment and factory services. A more detailed plan can then be
attempted using three dimensional models or scaled templates of production equipment to establish
the positions of individual items. A preliminary layout of the factory is thus provided as a basis for
discussion before a final layout is agreed.

Storage

Stores Organisation

Storekeeping normally involves the performance of five functions, as follows

~1) receiving materials, components and finished products, ensuring they are correctly identified and
accompanied by the relevant documents

(2) locating stock so that it can be easily found when required

(3) storing stock so that it remains in good condition, with adequate security

(4) issuing from stock such quantities as are authorised, and maintaining a procedure whereby shortages
are recorded and cleared when new stock becomes available

(5) recording receipts and issues on stock records so that the correct stock is shown.

In manufacturing companies separate stores will normally be required for raw materials, component
parts and finished products. Additionally service stores to provide parts drawings, tools and
consumables must be prOVided.

Stores Layout

When deciding on the size and layout of stores the main objectives must be economy of space and
effort. It is not possible to specify a generally preferable method of storage owing to the variability in
the shapes and types of items that are stored.

Bar materials can be stacked vertically, thereby giving good utilisation of space, or horizontally in racks
or specially designed stacking pallets; these two methods are costly in labour, since bars must be
individually manipulated for storing. The third approach is more attractive, since the pallets can be
loaded directly from the lorry and moved into position with a travelling crane.

Small parts stored in bulk can be placed in standard containers that fit into specially designed storage
racks. Where possible it is desirable that the same containers are also used to hold the parts for
transporting during manufacture, thereby reducing handling and the possibility of damage by tipping
from one container to another.

Materials and components of intermediate size can be stored in box pallets, which are stacked vertically
by means of overhead cranes or fork lift vehicles. The pallets are fitted with interlocking corner posts so
that they can safely be stacked four or five pallets high. Stacking heights can be increased if the pallets
are racked, enabling a pallet to be removed without disturbing those above it. If pallet racks are used
pallets must be raised by fork -lift devices which require wide gangways

for their operation. Fork-lift stackers require gangways at least 2 m wide and conventional fork lift trucks
require at least 3 m for manoeuvring in gangways. Very large items, bulk liquids, powders or granular
substances will demand special provision for storage, since they cannot be located either in standard

containers or pallets. There are two basic methods by which stock can be located: in fixed or floating
locations. The use of fixed locations presupposes a knowledge of maximum anticipated stock levels and
frequently leads to unduly large spaces being allocated. floating locations provide improved space
utilisation, but depend on the correct updating of location cards when a new location is used, or an old
one vacated.

They also facilitate first in/first out storage, since stock can be issued from the old locations first. In most
factories fixed locations are used for items requiring special storage provision and floating locations are
used for items held in standard containers and pallets.

It is necessary in component stores to provide a receiving area where incoming parts are checked
against shortage lists to ensure that any shortages are cleared before the parts are stored. Space is also
required in component stores to house the parts that have been preselected for despatch to the
assembly section. To reduce the amount of handling many companies do not preselect cheap parts used
in large quantities; these are bulk-issued when required by the assembly department from a controlled
stock.

When deciding on the layout of stores or warehouses it is useful to consider the number of stores
transactions that occur for each item. These are usually found to follow a Pareto-type distribution,
where about 20 per cent of the parts contribute about 80 per cent of the transactions. It is desirable
that these high-use parts be stored as near as possible to the point of issue to reduce the amount of
travelling involved.

Even well-designed stores can be inefficient in the use of space, the main losses being due to part-filled
and empty locations, limitations on stacking height, and the need for gangways. Factory planning
engineers have the difficult task of estimating the amount of storage space required, not only for the
present but for some years ahead. If the space allocated is too conservative storage problems such as
the sharing of locations will make efficient storekeeping difficult. If too much space is allocated to stores
factory costs will be unnecessarily inflated.