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OPERATIONS MANAGEMENT
CHECK POINT 68: PLANT LAYOUT

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1. what is plant layout?
2. Lean Operational Guidelines For Plant Layout
3. advantages of good plant layout
4. importance of good plant layout
5. key factors in the plant layout design process
6. two stages in traditional plant layout design
7. three traditional types of plant layout
8. process layout
9. small business example
process layout
10. advantages of process layout
11. disadvantages of process layout
12. product layout
13. small business example
product layout
14. advantages of product layout
15. disadvantages of product layout
16. fixed position layout
17. which type of plant layout will meet your needs?
18. Just-in-time plant layout
19. for serious business owners only
20. the latest information online
 

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OPERATIONS MANAGEMENT
CHECK POINT 68: PLANT LAYOUT

Please Select Any Topic In Check Point 68 Below And Click.

1. what is plant layout?
2. Lean Operational Guidelines For Plant Layout
3. advantages of good plant layout
4. importance of good plant layout
5. key factors in the plant layout design process
6. two stages in traditional plant layout design
7. three traditional types of plant layout
8. process layout
9. small business example
process layout
10. advantages of process layout
11. disadvantages of process layout
12. product layout
13. small business example
product layout
14. advantages of product layout
15. disadvantages of product layout
16. fixed position layout
17. which type of plant layout will meet your needs?
18. Just-in-time plant layout
19. for serious business owners only
20. the latest information online
 

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HOW CAN YOU BENEFIT FROM CHECK POINT 68?

 
The main purpose of this check point is to provide you and your management team with detailed information about Plant Layout and how to apply this information to maximize your company's performance.
 
In this check point you will learn:
 
• What is plant layout?
• About lean operational guidelines for plant layout.
• About advantages and importance of good plant layout.
• About key factors in the plant layout design process.
• About two stages in traditional plant layout design.
• About three traditional types of plant layout.
• About advantages and disadvantages of a process layout.
• About advantages and disadvantages of a product layout.
• About advantages and disadvantages of a fixed position layout.
• About JIT plant layout... and much more.
 

LEAN MANAGEMENT GUIDELINES FOR CHECK POINT 68

 
You and your management team should become familiar with the basic Lean Management principles, guidelines, and tools provided in this program and apply them appropriately to the content of this check point.
 
You and your team should adhere to basic lean management guidelines on a continuous basis:
 
Treat your customers as the most important part of your business.
Provide your customers with the best possible value of products and services.
Meet your customers' requirements with a positive energy on a timely basis.
Provide your customers with consistent and reliable after-sales service.
Treat your customers, employees, suppliers, and business associates with genuine respect.
Identify your company's operational weaknesses, non-value-added activities, and waste.
Implement the process of continuous improvements on organization-wide basis.
Eliminate or minimize your company's non-value-added activities and waste.
Streamline your company's operational processes and maximize overall flow efficiency.
Reduce your company's operational costs in all areas of business activities.
Maximize the quality at the source of all operational processes and activities.
Ensure regular evaluation of your employees' performance and required level of knowledge.
Implement fair compensation of your employees based on their overall performance.
Motivate your partners and employees to adhere to high ethical standards of behavior.
Maximize safety for your customers, employees, suppliers, and business associates.
Provide opportunities for a continuous professional growth of partners and employees.
Pay attention to "how" positive results are achieved and constantly try to improve them.
Cultivate long-term relationships with your customers, suppliers, employees, and business associates.

1. WHAT IS PLANT LAYOUT?

 PLANT LAYOUT

Business owners and operations managers must be familiar with various types of plant layout procedures which represent an integral part of the operations management process.

Plant was defined earlier as: "The tools, machinery, fixtures, buildings, grounds, etc. of a factory or business." 

Plant Layout, then, is the process of positioning machinery and equipment within the confines of facility space and is designed to ensure their most effective performance.

The process of plant layout represents a fundamental Work-Study Task and demands a thorough investigation of the product, machinery, and manufacturing or operational process. Although the principles of plant layout are basically similar for different industries, the application may vary substantially, depending upon the nature of the product, size of the facility, type of machinery, and requirements of the manufacturing or operational process.

ADDITIONAL INFORMATION ONLINE

Facility Layout By Dowtsx.
Facility Location And Layout By Edu Wala.
How To Make Facility Layout? By Kuza Biashara.
Typical Plant Layout Animation By Subodh Sharma.
3D Visual Layout With Factory Design Suite By Autodesk Factory.

2. LEAN OPERATIONAL GUIDELINES FOR PLANT LAYOUT

THE MAIN PURPOSE OF PLANT LAYOUT

The main purpose of a good Plant Layout is to make the manufacturing and operational processes simpler, faster, more efficient, and less expensive, while maintaining high quality and the ability to make products and provide services to meet customers' needs at any time. 

In order to accomplish this task, you and your management team must become familiar with Lean Management principles, methods, and guidelines contained in this program and apply them to plant layout. These guidelines have been developed by management experts in the Toyota Motor Corporation in Japan and contained in the Toyota Production System (TPS).

MAIN ELEMENTS OF THE TOYOTA PRODUCTION SYSTEM

Kaizen

Just-In-Time

Jidoka
(Autonomation)

Total Productive
Maintenance (TPM)

 
Some of the Lean Operational Guidelines related to plant layout are summarized below.
 

LEAN OPERATIONAL GUIDELINES RELATED TO PLANT LAYOUT

1.

Develop self-contained sub-plants or working cells to handle smaller volumes of products or operations in a cost-effective manner.

2.

Maximize the facility floor and space utilization.

3.

Develop "U-type" machine cells based on product layout, assembly, storage, tooling, material purchasing, maintenance, quality control, product and process design requirements.

4.

Eliminate or minimize the possibility of labor and material waste in the manufacturing or operational processes.

5.

Eliminate or minimize the possibility of machine-time and equipment waste in the manufacturing or operational processes.

6.

Balance and synchronize all activities in the manufacturing or operational processes.

7.

Maximize the flexibility within the manufacturing or operational facility.

8.

Maximize the low-cost automation of plant, machinery, and equipment.

9.

Maximize the use of material handling and lifting equipment and conveyor lines.

10.

Maximize perimeter access for receiving and shipping materials.

11.

Maximize the use of parallel or single assembly lines.

 
Lean Management is discussed in detail in Tutorial 1.
 

ADDITIONAL INFORMATION ONLINE

Driven - The Toyota Way.
Toyota Production System.
The Toyota Way Philosophy.
Toyota Production System Principles.
The Toyota Way To Lean Leadership By Jeffrey Liker.

3. ADVANTAGES OF GOOD PLANT LAYOUT

OBJECTIVES OF GOOD PLANT LAYOUT

The ideal plant layout is best designed when a new facility is to be erected. Usually, however, this is not the case and it is often necessary to fit equipment into an existing facility which may not lend itself to the ideal plant payout. 

The Main Objective Of Plant Layout in this case is to ensure improvement in the operating efficiency of the existing manufacturing or operational processes, or to develop new product manufacturing lines, or new service operational lines.

Good plant layout is of great importance in every manufacturing and non-manufacturing organization alike. It usually provides essential cost-saving advantages which are outlined below.

COST-SAVING ADVANTAGES OF GOOD PLANT LAYOUT

1.

Work travels in a definite direction.

2.

Materials are moved over the shortest possible distances.

3.

The amount and cost of material handling is reduced to a minimum.

4.

Overall time and volume of work-in-process is reduced.

5.

The level of inventory in storerooms is decreased.

6.

Labor and machinery are more efficiently utilized.

7.

Facility space utilization is improved.

8.

Work routing is simplified.

9.

Labor requirements are optimized.

10.

There is an overall cost reduction of production control procedures.

11.

Job shop, batch, and flow production environments have increased efficiency.

4. IMPORTANCE OF GOOD PLANT LAYOUT

IMPORTANCE OF GOOD PLANT LAYOUT

Plant Layout within the facility and relation of various manufacturing or operational sections should be set out correctly to ensure efficient manufacturing or service operation. 

The Absence Of Good Plant Layout may cause deterioration of the production flow so that it becomes difficult to control the progress of work through the facility. Raw materials are no longer prepared on time, components arrive too late, and work interruptions occur more often.

The Quality Of Plant Layout also affects the ease with which workers operate within the facility, the material handling time, and the space required for the work-in-process. Good plant layout usually contributes substantially to the overall cost decrease of the manufacturing operation and improves the morale of the company's employees.

5. KEY FACTORS IN THE PLANT LAYOUT DESIGN PROCESS

PLANT LAYOUT DESIGN

Several key factors should be considered by the operations manager throughout good Plant Layout Design as outlined below.

KEY FACTORS IN THE PLANT LAYOUT DESIGN PROCESS

• Operational Flexibility.

Maximum flexibility of plant layout is important to allow further modifications and to accommodate ever-changing working requirements. This necessitates provision of sufficient electrical installations, power, water, and air supply points, depending on the nature of the manufacturing or operational process.

• Space Utilization.

Maximum space utilization of the facility floor and available height must be ensured. Space utilization is particularly important in the storeroom where raw materials, work-in-process, and finished goods can be stacked at substantial heights without causing particular inconvenience.

• Operational Coordination.

Plant layout must provide maximum operational coordination between various  departments and activities within the facility. It is essential to ensure a smooth flow of materials and provide for minimum of labor movement during the manufacturing process.

• Equipment Accessibility.

Maximum accessibility of equipment helps a work to flow between various work centers, effective handling of materials, and easy maintenance procedures. For such reasons, equipment should not be placed against a wall or in front of power, water, or air installations.

• Operational Visibility.

Maximum operational visibility within the facility helps to monitor actions of employees and movement of materials during the manufacturing process. It is important, therefore, to avoid invisible spots or hiding places and to reduce the number of separate offices and partitions as much as possible.

• Material Movement.

Minimum material movement within the facility helps to reduce operational times, improve productivity, and minimize overall manufacturing costs. Material movement over extended distances often necessitates the creation of unnecessary intermediate storage places and causes additional delay in production output.

• Materials Handling.

Simplified material handling procedures help to maintain high production efficiency and reduce overall manufacturing costs. It is essential, therefore, to utilize suitable material-handling equipment to allow for easy handling and movement of materials throughout the facility during the manufacturing process. Such equipment includes conveyors, hoists, cranes, forklifts, and other mechanisms.

• Employees Comfort.

Sufficiently comfortable working conditions help to improve the morale of employees and to maximize the overall productivity level. It is important, therefore, to provide good illumination and fresh air at a suitable temperature, and to reduce unnecessary noise, heat, dust, vibration, and odors. Certain manufacturing processes may require installation of air control equipment, depending on the degree of discomfort created by such processes.

• Employees Safety.

Maximum safety of employees represents a highly important moral obligation. It is essential to install safety guards around all dangerous process points, electrical and compressed air installation units, steam boilers, chemical tanks, and rotating and moving parts of machinery and equipment. Care should be exercised not only in regard to the employees operating such equipment, but also in relation to maintenance employees and passers-by.

• Operational Security.

Maximum operational security helps to ensure the safety of employees and prevent possible loss or theft of materials. It is important, therefore, to ensure that plant layout will not cause a potentially hazardous situation and that there will be adequate safeguards against fire, heat, moisture, and other undesirable factors.

6. TWO STAGES IN TRADITIONAL PLANT LAYOUT DESIGN

Traditional Plant Layout Design normally consists of two stages illustrated below.

TWO STAGES IN TRADITIONAL PLANT LAYOUT DESIGN

Stage 1: Divide The Facility Into Various Work Centers In Accordance With The Company's Operational Requirements.

Stage 2: Arrange The Correct Positioning Of Machinery And Equipment In Each Work Center.

 

IMPORTANT FACTORS IN PLANT LAYOUT DESIGN

The planning procedure and Plant Layout design depend primarily upon the nature of the manufacturing or operational process. It is important, therefore, to identify the particular parameters of the manufacturing or operational process and to establish the most suitable type of production or operations at the outset of the plant layout planning procedure.

Furthermore, there is a need to determine the Total Capacity Of The Facility and to evaluate the future requirements of the expansion program. The ultimate purpose of the plant layout design process is the completion of several tasks outlined below.

PLANT LAYOUT DESIGN TASKS

1.

To select the suitable type of plant layout.

2.

To calculate the total movement of materials in the facility.

3.

To determine the type and number of machinery, equipment, and tooling.

4.

To balance all stages of production operations.

5.

To list all production inspection facilities.

6.

To plan all production maintenance requirements.

7.

To determine material purchasing, storage, and distribution facilities.

7. THREE TRADITIONAL TYPES OF PLANT LAYOUT

PLANT LAYOUT IN THE MANUFACTURING INDUSTRY

In the manufacturing industry there are three traditional methods widely used in the process of Plant Layout development as illustrated below.

 

 THREE TRADITIONAL TYPES OF PLANT LAYOUT

   
Process
Layout
  Product
Layout
  Fixed Position
Layout
 

ADDITIONAL INFORMATION ONLINE

Designing The Process Layout By Feng Tian.
Process Layout And Service Layout By Freesunny.
Layout Planning By Arun Kanda, IIT Delhi, Nptelhrd.
Process Vs. Product Layout By Prashanth Bharadwaj.
Process Selection And Facility Layout By Givon Consulting.

8. PROCESS LAYOUT

PROCESS LAYOUT

Process Layout represents a functional layout of the facility where the manufacturing or operational effort is departmentalized in accordance with the processes employed in production.

This type of layout, illustrated below, is commonly used in a Job Shop and Batch Production environments.

 

ADDITIONAL INFORMATION ONLINE

Job Shop Process By JmrFerrer.
Haas Factory Tour By Haas Automation, Inc.
Barnes Bullets Factory Tour By DefenceActions.
Factory Tour Of Nakamura Tome By FandMMagazine.
A CNC Machine Shop Unlike Any Other By FitzPatrickMfgCo.

9. SMALL BUSINESS EXAMPLE
 PROCESS LAYOUT

PROCESS LAYOUT

This example illustrates plant layout consisting of four operational sections: 

Cutting Section - Bending Section - Machining Section - Welding Section


Each section has a certain amount of specialized machinery and equipment, similar in their operational application:

  • Cutting Section - cutting machines: 1 - 2 - 3
  • Bending Section - bending brakes: 4 - 5 - 6
  • Machining Section - NC machines: 7 - 8 - 9 - 10
  • Welding Section - arc welders: 11 - 12 - 13

If, for instance, the company is manufacturing three different products, then particular production requirements will necessitate that each item undergoes various operations using various machines and in accordance with the following sequence:

  • Product 1 - Operations: 1 - 4 - 7 - 8
  • Product 2 - Operations: 2 - 5 - 9 - 8 -12
  • Product 3 - Operations: 3 - 6 -10 -13

10. ADVANTAGES OF PROCESS LAYOUT

APPLICATION OF PROCESS LAYOUT

Process Layout is usually applied when the product or process is not or cannot be standardized or when the volume of the identical work is too low. Such an operational condition requires flexibility in the manufacturing or operational sequence and is usually obtainable with this type of plant layout.

Process layout has several advantages and disadvantages in its application within the manufacturing environment. Some of the advantages of this type of layout are outlined below.

ADVANTAGES OF PROCESS LAYOUT

1.

It requires a lower capital investment in equipment to carry maximum production loads and to handle a number of product lines simultaneously.

2.

It ensures higher operational capacity utilization.

3.

It provides improved operational flexibility and allows loading various jobs onto any machine in a similar class available at the time.

4.

It necessitates that operators maintain a high level of professional skills and requires more universal abilities to operate any size of machinery and equipment in a similar functional operation.

5.

It enables foremen and supervisors to improve their skills and efficiency in the process of operating machinery and ensures better performance of work.

6.

It keeps manufacturing costs down. Although labor costs may be higher during the peak production periods, they will be lower during the production slowdown, ensuring minimal expenditure.

7.

It provides manufacturing process continuity even during the time when certain machinery ceases operating. Workload is merely transferred to another machine, if available, or is rescheduled for a later time.

11. DISADVANTAGES OF PROCESS LAYOUT

Some of the disadvantages of Process Layout are outlined below.

DISADVANTAGES OF PROCESS LAYOUT

1.

There is no definite manufacturing process route describing the particular flow of work. The production routing and scheduling is, therefore, more complex.

2.

There is more material handling and higher costs as a result of the separation of manufacturing operations and the greater distances over which work is traveling.

3.

There is a need for greater effort during the process of work coordination because of weak control over the manufacturing process sequence and possible delay or loss of work as a result of work traveling longer distances.

4.

There is an increase in total manufacturing time since work must be prepared in advance and transported to a particular production section to avoid idle machines.

5.

There is an increased piling-up of work around certain machines because of raw material delivery that can slow work in advance of processing, hold up work for inspection after processing, and cause work to await movement when released.

6.

There is an absence of compact manufacturing process line layouts and normally larger spacing between machines in various production sections. This results in larger floor area occupation per unit of product.

7.

There is a need for more inspections, normally one after each operation if work has to go to another production section, instead of one at the end of a specific set of operations within a particular section.

8.

There is a need for a more complicated system of production planning but no means for visual control. It is necessary to maintain a close check of operations on all components with numerous work-and-inspection orders. This procedure often requires more clerical and non-productive work.

9.

There is a need to provide more training in order to prepare workers for a wide range of jobs.

12. PRODUCT LAYOUT

PRODUCT LAYOUT

Product Layout represents a functional layout of the facility where the manufacturing or operational effort concentrates on large quantities of a well-standardized product or process. 

This type of layout, illustrated below, is commonly used in a Flow Production environment.

 

ADDITIONAL INFORMATION ONLINE

Product Oriented Layout By Aya140906.
Layout Planning By Arun Kanda, Alex Krichevski.
Process Vs. Product Layout By Prashanth Bharadwaj.
Product Layout And Assembly Line Balancing By Arun Kanda, Nptelhrd.
Interactive Layout Presentation With Factory Design By Autodesk Factory.

13. SMALL BUSINESS EXAMPLE
  PRODUCT LAYOUT

PRODUCT LAYOUT

This example illustrates plant layout consisting of two product sections, Product A and Product B. Each section has a certain number of specialized machinery and equipment which provide all operations required by a particular manufacturing process.

The manufacturing process of Product A, for example, consists of five specialized operations, represented in the following order:

  • 1. Cutting of sheet metal - cutting machine.
  • 2. Bending of sheet metal parts - bending brake.
  • 3. Welding various components together - spot welder.
  • 4. Grinding of the assembled product - grinder.
  • 5. Coating of the assembled product - dry powder equipment.

Similarly, the manufacturing process of Product B also consists of five specialized operations as follows:

  • 1. Cutting the blank - power saw.
  • 2. Turning the shaft - central lathe.
  • 3. Milling the key-way - milling machine.
  • 4. Hard-chroming the shaft - electroplating equipment.
  • 5. Inspecting the shaft - gauging tools and measuring instruments.

14. ADVANTAGES OF PRODUCT LAYOUT

APPLICATION OF PRODUCT LAYOUT

Product Layout is usually applied in manufacturing or service companies that concentrate on highly-standardized products or processes representing a limited product or process range and manufactured or processed in fairly large quantities, like in assembly lines.

Product layout has certain advantages and disadvantages in its application within the production environment of any industrial organization. Some of the advantages of product layout are outlined below.

ADVANTAGES OF PRODUCT LAYOUT

1.

It provides a steady flow of work over direct operational routes, minimizing delays in the manufacturing process.

2.

It requires less material handling because of shorter travel of work between relevant working stations.

3.

It provides for closer coordination of the manufacturing process as a result of the pre-planned operational sequence.

4.

It helps to minimize manufacturing time per unit of product.

5.

It helps to reduce the volume of work-in-process between various working stations.

6.

It requires smaller floor areas per unit of product within the production facility.

7.

It simplifies production planning and control procedures since all operations are synchronized well in advance.

8.

It requires a limited amount of inspection between working stations since quality control becomes an integral part of the manufacturing process.

15. DISADVANTAGES OF PRODUCT LAYOUT

Some of the disadvantages of Product Layout are outlined below.

DISADVANTAGES OF PRODUCT LAYOUT

1.

There is a need for higher capital investment in machinery and equipment because of duplication of some manufacturing processes.

2.

There is an increased potential for machine idleness if certain production lines are not fully loaded to their operational capacity.

3.

There is less flexibility in the process of work accomplishment because jobs cannot be re-routed to other similar machines as in the process layout arrangement.

4.

There is little development of workers' operating skills because each operator only learns his or her job at a specific machine or working station. This results in decreased universal abilities of workers in operating a range of machinery and equipment.

5.

There is no highly efficient supervision because supervisors and foremen become too involved in specific manufacturing processes and neglect the overall in-depth knowledge required to set up and regulate the operation of various machinery and equipment. This process requires skilled setters to prepare specific machines for work in order to meet manufacturing process requirements.

6.

There is an overall increase in manufacturing costs, although labor costs per unit of product may be lower. This increase is a direct result of high facility overheads on production lines, particularly if the utilization of the operational capacity is not used to the full extent, and if certain machines are idle.

7.

There is an increased danger of production line shutdown if certain machinery or equipment fails to perform. It is necessary, therefore, to provide standby equipment or additional manufacturing facilities in order to prevent unnecessary production delays and to keep the work flowing.

16. FIXED POSITION LAYOUT

FIXED POSITION LAYOUT

Fixed Position Layout represents a functional layout of the facility based on bringing people and equipment to the item being produced. 

This type of layout may be used if the work item is too heavy or too bulky to be moved without problems. Typical examples of fixed position layout are outlined below.

EXAMPLES OF FIXED POSITION LAYOUT

1.

Projects and contractors, such as building and civil contractors.

2.

Large manufacturers, such as manufacturers of airplanes, trains, or ships.

 

ADDITIONAL INFORMATION ONLINE

World Biggest Building By Charlie Adams.
787 Delivery Factory Tour By Keith Dravcott.
Building Of The Greyhound By Traditional Maritime.
Boeing South Carolina: A Factory Of The Future By Boeing.
Halifax Shipyard: Shipbuilding Time Lapse By Ships Start Here.

17. WHICH TYPE OF PLANT LAYOUT WILL MEET YOUR NEEDS?

WHICH TYPE OF PLANT LAYOUT IS BEST FOR YOUR COMPANY?

A thorough investigation of manufacturing or operational process requirements will determine the type of Plant Layout best suited to your particular production environment as outlined below.

APPLICATION OF DIFFERENT TYPES OF PLANT LAYOUT

1.

Process Layout.
Process layout is generally most suitable in a Job Shop or Batch Production environment.

2.

Product Layout.
Product layout is most useful for the Flow Production operations.

3.

Fixed Position Layout.
Fixed position layout may be used for specific Projects and Contracts.

Certain companies, however, may decide to employ any combination of the above types of plant layout within the same facility to ensure maximum flexibility of overall operational abilities.

18. JUST-IN-TIME PLANT LAYOUT

JUST-IN-TIME PLANT LAYOUT

Finally, there is another type of plant layout which may be the most suitable type of layout to meet your company's specific operational needs. This type of plant layout is used in a Lean Operational Facility and it is known as Just-In-Time (JIT) Plant Layout. The JIT plant layout is developed in accordance with Lean Management principles, methods, guidelines, and tools contained in this program.

The prime objective of JIT Plant Layout is to enable a company to meet its customers' requirements on a Just-In-Time basis by implementing Just-In-Time methodology within their organization.

Since Just-In-Time Methodology is very different from the traditional Western operational guidelines, it is discussed separately in detail in Tutorial 4.

Just-In-Time Implementation is also discussed in detail in Tutorial 1.

ADDITIONAL INFORMATION ONLINE

JIT Manufacturing By Laura Saffold.
Kanban Manufacturing By Ian Johnson.
Lean Manufacturing Examples By Qualmen.
Lean Manufacturing Cell By Ivan Hernandez.
Lean Manufacturing Tour By Philip Beyer, Ebiz Products.

19. FOR SERIOUS BUSINESS OWNERS ONLY

ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY?

Reprinted with permission.

20. THE LATEST INFORMATION ONLINE

 

LESSON FOR TODAY:
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