Arba Minch Institute of Technology (Amit)

Faculty of Mechanical Engineering

Industrial Management and Engineering

Economy

Chapter 3
Plant Layout

1
By: Ir. Getachew W.
2024
 3. Plant layout
 Plant/factory/ is a place where: men, materials, money, equipment, machinery,
etc. are agreed together for manufacturing products and service.
 Plant location means deciding a suitable location, area, place, etc. where the
plant or factory will start functioning.

When a new facility to be established

 Plant location = Geographic site for a firm


Relocation of existing facility

Expansion of existing facility
Need for Plant location:
Factors influencing plant location
 There are two basic factors that influencing plant location:
A. Controllable Factors
i. Proximity to markets: To ensure a consistent supply of goods to customers and
reduces the cost of transportation.
ii. Supply of raw material: Get raw material in right qualities and time in order to
have an continuous production.
iii. Transportation facilities: For timely supply of raw materials to the company
and finished goods to the customers.
iv. Infrastructure availability: Power, water and waste disposal, etc
v. Labor and wages: Ensure proper number of labor and with skills.
 Availability of Efficient and Cheap Labor should be ensured.
B. Uncontrollable Factors
i. Government policy: policies of governments like:- labor laws, building
codes, safety, etc.,
ii. Climatic conditions: Geology of the area & climatic conditions (humidity,
temperature).
 Plant layout
Plant Layout is the arrangement of physical facilities such as machines, equipment,
tools, furniture etc., which make the product or service.
Plant layout is defined as the arrangement of industrial facilities, including:
 Personnel
 Operating equipment
 Storage space
 Materials handling equipment and
 All other supporting services which make the product or service.

 The primary goal of plant layout is to maximize the profit by the arrangement of all
 Objectives of a Plant Layout

Ensure effective space utilization

Improve workers safety and create job satisfaction

Avoid unnecessary capital investment.

Facilitate the manufacturing process and flexibility of manufacturing operations

Effective utilization of resource (men, equipment and space).

Minimize the cost of material handling

Minimize accident and damage
Note: These are not only the objectives but also the important, this is true, if and
only if plant layout is well organized and properly arranged.
 Principles of a good plant layout

1. Principle of integration: Integrates men, materials, machines and supporting

services in order to get the optimum utilization of resources and maximum
effectiveness.

2. Principle of minimum distance: Concerned with the minimum travel of Personnel

and materials.

3. Principle of cubic space utilization: Use both horizontal and vertical space.

4. Principle of safety, security and satisfaction: Consider to workers safety and

satisfaction and safeguards the plant and machinery against hazards.
Types of Plant layout

1. Manufacturing units

2. Service establishments
The manufacturing unit of an industrial organization, plant layout can be
classified as four types:

1. Product or line oriented layout

2. Process or functional oriented layout

3. Static layout/Fixed position/Project layout

4. Combined layout
1. Product or Line oriented Layout (Repetitive Processing)
In this type of layout, only one type of product is produced in a given area
(workstation).
This type of plant layout is useful when the production process is organized in a
job.
Suitable for continuous type or repetitive way.
Is selected when the volume of production of a product is high
 The product must be standardized and manufactured in large quantities.
Special purpose machines are used, machines are not shared by different
products.

Product Layout is useful under the following conditions:

 Mass production of standardized products
 Simple, continuous and repetitive manufacturing process
Fig1. Product/line Layout for Wine Manufacturer
Advantages and Disadvantages of product/line Layout

Advantages
Disadvantages
 Lower material handling cost
Change in work nature needs change in
 Lower production time
layout
 Less floor area required
Work area expansion/machine addition
per unit of production
not possible
 Easy to schedule
High capital investment
 Easy production control
No flexibility in the production process.
2.Process/functional plant Layout (Non-repetitive Processing)

In this type of layout, Similar equipment/facilities, Similar tasks and similar
operations are grouped together according to their functions.
This type of plant layout is useful when the production process is organized in
batches/groups.
It is particularly useful for low volume and high variety jobs is required.
Recommended for batch production and low production volumes.
Flow paths of material vary from product to product.
Process/Functional Layout useful where:
All machines/equipment/facilities, tasks and operations are grouped together according to their
functions.
Low production volumes
Rapid changes in the product mix
One machine is used for different operations.

Fig 2: Process Layout for a Machine Shop

Advantages and Disadvantages of process/function Layout

Advantages
Disadvantages
Low capital investment
 Needs more space
Flexibility in equipment allocation
 No mechanization
Workers gain expertise
 Work scheduling problems
Job variety
 High set-up & inspection costs
 Material handling costs are high
3. Static layout/Fixed position/Project layout

A fixed-position layout combines the resources necessary to manufacture a good

or deliver a service, such as people, materials and equipment, in one physical
location.
In this type of layout, the material or major component remains in a fixed
location and tools, machinery, men as well as other pieces of material are taken
to this location.
 The production of large items such as heavy machine tools, airplanes,
locomotives and ships is usually accomplished in a fixed-position layout.

Typical examples are ship building, construction industries, aircraft building.

This type of layout is not frequently used in industrial enterprises.
Advantages and Disadvantages of Fixed position /project Layout

Advantages Disadvantages
Reduces movement of machine &  Skilled & versatile workers
equipment needed due to multiple operations
Minimizes damage/cost of movement  Movement of people/material
Continuity of assigned work force
may be expensive
Layout capital investment is lower.  Low equipment utilization
4. Combined or group plant layout (cellular layout)
In a this type of layout, the design is not according to the functional
characteristics of equipment, but rather by self-contained groups of
equipment (called cells), needed for producing a particular set of goods or
services.
Cellular layouts are used to centralize people expertise and equipment
capability.

Examples: Groups of different equipment (called cells) needed for producing

families of goods or services or group legal medical specialties (maternity,
oncology, surgery, etc.).
Factors influencing/ affecting Plant Layout

Management policy Production process

Manufacturing process Type of equipment

Nature of product Availability of total floor area

Volume of production Arrangement of Material Handling Eq.

Type of building Possibility of future expansion

Factors to be Considered in Planning plant Layout

Type of layout: Pattern of the flow lines and communication systems

Hazards: Moving parts, projecting machine elements, suspended weights, air
pollution, physical & chemical risks, safety of personnel & plant.
Type of Production: Job, batch or continuous or combinations
Type of Operation: Wet or dry, Light or heavy machines etc.
Plant environment: Heat, light, noise, ventilation and other aspects should be
considered.
Ergonomics and Industrial Safety
The term ‘ergonomics’ comes from the Greek words ergon (work) and nomos
(law).
Ergonomics is an opportunity to improve productivity and quality though
increasing employee safety and morale.
What is Ergonomics?
It is a branch of science that is concerned with the achievement of optimal
relationship between workers and their work environment.
It study the interaction between human and machines and the factors that affect
the interaction.
Is used to increase employee safety, morale and comfort to optimize work
performance and quality.
Is used to prevent injuries and illnesses associated with the design of physical
work and workstation.
The primary/main goal of ergonomics is to improve human well-being and
overall system performance by optimizing human-machine compatibility.
If good fit is achieved
The stresses on people are reduced
They are more comfortable
They can do things more
quickly & easily
Increase safety on the job
If not fit, the work requirements that can cause discomfort, fatigue, injury, and
illness are:
Stretching to reach
Repeated heavy lifting
High pinch forces
Handling objects that are
sharp, very hot, or very cold.
Working with hands
above shoulders
Long periods of work
without a change in body posture.
Ergonomics

Human-Machine Systems
 Defined as a combination of humans and equipment interacting to achieve some
desired result.
 Types of human-machine systems:
1.Manual systems
2.Mechanical systems
3.Automated systems 25
Human-Machine Interactions

System Components
 The human
 The machine
 The environment
1. Human Components
Human senses: To sense the operation: Vision, hearing, touch, taste, and smell
Human brain: For information processing: Thinking, planning, calculating,
making decisions, solving problems
Human effectors: To take actions: Fingers, hands, feet, and voice

2. Machine Components
Process: Function or operation performed by human-machine system
Displays: To observe the process
Direct observation for simple processes
Artificial displays for complex processes
Controls: To actuate and regulate the process
Steering wheel, computer keyboard, remote
3. Environmental Components
Physical environment: Location and surrounding, lighting, noise, temperature,

and humidity.
Social environment

Co-workers and colleagues at work

Immediate supervisors

Organizational culture
Industrial Safety
Is primarily a management activity that is concerned with reducing, controlling,

and eliminating hazards from the industrial units.

 Plant layout Vs Ergonomics
 Many of the problems encountered in the ergonomic design of man & controls
will be found in the design of workplace layouts.
 Fig. Bench & seat heights
 The efficiency of the operator will depend upon how the work places designed.
Higher productivity Greater job satisfaction
Higher Quality Lower medical & insurance costs
Reduced operator injury Reduced lost time
Increased morale
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