OPERATION MANAGEMENT

Course Leader: Dr. B Dayal

1
COPYRIGHT NOTICE
THIS MOTION PICTURE IS PROTECTED UNDER INTERNATIONAL LAWS
AND ITS UNAUTHORIZED DUPLICATION, EXHIBITION, DISTRIBUTION
OR USE MAY RESULT IN CIVIL LIABILITIES AND
CRIMINAL PROSECUTION, PEOPLE APPEARING IN THIS MOTION
PICTURE HAVE GIVEN THEIR CONSENT AND DO SO TO YARDSTICK
INTERNATIONAL PLC ONLY.

Copyright © 2021
Yardstick International College

2
Lecture 3

LAYOUT PLANNING

3
Lecture 3: Plant Lay Out
● Introduction
● Objectives of plant layout
● Principles of plant lay out
● Effects of plant layout
● Considerations of plant layout
● Factors affecting plant layout
● Types of plant layout
● Assembly line balancing

4
INTRODUCTION
● Decisions about layout are made only periodically, but since they have
long-term consequences, they must be made with careful planning. The
layout design affects the cost of producing goods and delivering services
for many years into the future. The design of layouts begins with a
statement of the goals of the facility. Layouts are designed to meet these
goals. After initial designs are developed, improved designs are sought.
This can be a tedious and cumbersome task because the number of
possible designs is so large. For this reason, quantitative and
computer-based models are often used

5
INTRODUCTION
● It is the spatial arrangement of physical resources used to create the
product. It also means how the space needed for material movement,
storage, indirect labor, etc is arranged in a factory.
● For a factory which is already in operation, this may mean the
arrangement that is already present. However, for a new factory this
means the plan of how the machines, equipment, etc will be arranged in
the different sections or shops. These should be arranged in such a way
that material movement cost, cost of storage in between
processes, the investment on machines and equipment
etc should be optimal and the product is as cheap as
possible.

6
PLANT LAYOUT
Definition:
● Plant layout is defined as
“The most effective physical arrangement of machines, processing equipment, and
service departments to have the best co-ordination and efficiency of man, machine
and material in a plant.”
● Reasons for plant layout.
● Need to make minor changes in present layout due to method improvement,
new type of inspection plan, and new type of product,
● Need to rearrange the existing layout due to marketing and
technological change,
● Re-allocating the existing facilities due to new location, or
● Building a new plant.

7
PLANT LAYOUT
Objective:
● The primary goal of the plant layout is to maximise the profit by
arrangement of all the plant facilities to the best advantage of total
manufacturing of the product.
The objectives of plant layout are:
1. Streamline the flow of materials through the plant.
2. Facilitate the manufacturing process.
3. Maintain high turnover of in-process inventory.
4. Minimise materials handling and cost.
5. Effective utilisation of men, equipment and space.

8
PLANT LAYOUT
The objectives of plant layout are:
6. Make effective utilisation of cubic space.
7. Flexibility of manufacturing operations and arrangements.
8. Provide for employee convenience, safety and comfort.
9. Minimize investment in equipment.
10. Minimize overall production time.
11. Maintain flexibility of arrangement and operation.
12. Facilitate the organizational structure.

9
PRINCIPLES OF PLANT LAYOUT
1. Principle of integration: A good layout is one that integrates men,
materials, machines and supporting services and others in order to get
the optimum utilisation of resources and maximum effectiveness.
2. Principle of minimum distance: This principle is concerned with the
minimum travel (or movement) of man and materials. The facilities should
be arranged such that, the total distance travelled by the men and
materials should be minimum and as far as possible straight line
movement should be preferred.
3. Principle of cubic space utilisation: The good layout is one
that utilise both horizontal and vertical space. It is not only
enough if only the floor space is utilised optimally but the
third dimension, i.e., the height is also to be utilised
effectively.
10
PRINCIPLES OF PLANT LAYOUT
4. Principle of flow: A good layout is one that makes the materials to move in
forward direction towards the completion stage, i.e., there should not be
any backtracking.
5. Principle of maximum flexibility: The good layout is one that
can be altered without much cost and time, i.e., future
requirements should be taken into account while
designing the present layout.
6. Principle of safety, security and satisfaction: A good layout
is one that gives due consideration to workers safety and
satisfaction and safeguards the plant and machinery
against fire, theft, etc.
7. Principle of minimum handling: A good layout is one that
reduces the material handling to the minimum.
11
EFFECTS OF A PLANT LAYOUT
A good layout will result in the following:
● Material handling and transportation is minimized and efficiently controlled.
● The movements made by workers are minimized.
● Waiting time of the semi-finished products is minimized.
● Bottlenecks and point of congestion are eliminated (by line balancing) so that
raw material and semi-finished goods move faster from one workstation to
another.
● Overall satisfaction & simplification which will result in full utilization,
minimum delay and congestion, ease in maintenance, and low
manufacturing time.
● Increased production, safer working conditions, well ventilated
rooms, clean environment,
● Increased flexibility for changes in product design, future
expansion, and optimal use of space.
12
EFFECTS OF A PLANT LAYOUT
● A good layout provides maximum satisfaction to the employees,
management, and share holders.
● Suitable spaces are allocated to production centers and service centers.
● Working conditions are safer, better (well ventilated rooms, etc.) and
improved.
● There will be improved work methods and reduced production cycle
time.
● There is an increased productivity, better product quality, and reduced
capital cost.

13
CONSIDERATIONS OF A PLANT LAYOUT
● The layout design must consider how to achieve the following:
● Higher utilization of space, equipment, and people.
● Improved flow of information, materials, and people.
● Improved employee morale and safer working conditions.
● Improved customer/client interaction.
● Flexibility to change the layout that exists anytime.

14
Practice Question
● Out of these, which one is not the objective of plant lay out?
o Facilitate the manufacturing process.
o Maintain high turnover of in-process inventory.
o Maximize investment in equipment.
o Minimize materials handling and cost.

15
FACTORS AFFECTING PLANT LAYOUT
● Layouts are affected by:
o Types of industry,
o Production systems,
o Types of products,
o Volume of production, and
o Types of manufacturing processes used to get the final products

16
FACTORS AFFECTING PLANT LAYOUT
Types of industry.
● Synthetic process based industry: In this, two or more materials are mixed to
get a product, e.g. cement is obtained from the combination of limestone and
clay.
● Analytic process based industry: It is opposite of synthetic process. Here, the
final products are obtained as a result of breaking of material into several parts.
For example, the petroleum products are obtained from the fractional
distillation (breaking process) of the crude oil.
● Conditioning process based industry: Here, the form of raw
material is changed into the desired products, e.g. jute products
in the jute industry, or the milk products in the dairy farm.
● Extractive process based industry: By applying heat, desired
product is extracted from the raw material, e.g. Aluminum from
Bauxite, and steel from iron ores.
17
FACTORS AFFECTING PLANT LAYOUT
TYPES OF PRODUCTION SYSTEM
● Continuous Production. They are characterized by standardized, high-volume,
capital-intensive products made to store in inventory, by small product mix; by
special purpose equipment; and by continuous product flow.
● Job Shop Production. The system should be flexible, which needs general
purpose machines and highly skilled workers.
● Batch Production.
o lot may be produced once or on regular interval
o generally to meet continuous customer demand
o plant capacity generally higher than demand
o general purpose machine but having higher production
rate
o specially designed jigs and fixtures
o most suitable for CAM (computer Added Machining)
18
FACTORS AFFECTING PLANT LAYOUT
TYPE OF PRODUCT.
● Whether the product is heavy or light, large or small, liquid or solid, etc.
VOLUME OF PRODUCTION.
● Whether the production is in small quantity, or in lots or batches, or in
huge quantity (mass production).

● To deal with a plant layout for any kind of production situation, one has
to step forward in a systematic and scientific manner.

19
TYPES OF PLANT LAYOUT
● Process layout
● Product layout
● Combination layout
● Fixed position layout
● Group layout

20
PROCESS LAYOUT
● Process layout is recommended for batch production. All machines performing
similar type of operations are grouped at one location in the process layout

MILLING lathe assembly

MACHINES

welding grinding inspection Receiving painting

and shipping

● Process layout is normally used when the production volume

is not sufficient to justify a product layout. Typically, job shops
employ process layouts due to the variety of products
manufactured and their low production volumes.

21
PROCESS LAYOUT
Advantages
1. In process layout machines are better utilized and fewer machines are
required.
2. Flexibility of equipment and personnel is possible in process layout.
3. Lower investment on account of comparatively less number of machines
and lower cost of general purpose machines.
4. Higher utilisation of production facilities.
5. A high degree of flexibility with regards to work distribution to
machineries and workers.
6. The diversity of tasks and variety of job makes the job
challenging and interesting.
7. Supervisors will become highly knowledgeable about the
functions under their department.
22
PROCESS LAYOUT
Limitations
1. Backtracking and long movements may occur in the handling of materials
thus, reducing material handling efficiency.
2. Material handling cannot be mechanised which adds to cost.
3. Process time is prolonged, which reduces the inventory turnover and
increases the in-process inventory.
4. Lowered productivity due to number of set-ups.
5. Throughput (time gap between in and out in the process) time is longer.
6. Space and capital are tied up by work-in-process.

23
 PRODUCT LAYOUT
● In this type of layout, machines and auxiliary services are located
according to the processing sequence of the product. If the volume of
production of one or more products is large, the facilities can be arranged
to achieve efficient flow of materials and lower cost per unit. Special
purpose machines are used which perform the required function quickly
and reliably.
Turning Milling Drilling Assembly
operation machine machines

Package & Inspection

dispatch

24
PRODUCT LAYOUT
Advantages
1. The flow of product will be smooth and logical in flow lines.
2. In-process inventory is less.
3. Throughput time is less.
4. Minimum material handling cost.
5. Simplified production, planning and control systems are possible.
6. Less space is occupied by work transit and for temporary storage.
7. Reduced material handling cost due to mechanized handling
systems and straight flow.

25
PRODUCT LAYOUT
Advantages (cont.…)
8. Perfect line balancing which eliminates bottlenecks and idle
capacity.
9. Manufacturing cycle is short due to uninterrupted flow of
materials.
10. Small amount of work-in-process inventory.
11. Unskilled workers can learn and manage the production.

26
PRODUCT LAYOUT
Limitations
1. A breakdown of one machine in a product line may cause stoppages of
machines in the downstream of the line.
2. A change in product design may require major alterations in the layout.
3. The line output is decided by the bottleneck machine.
4. Comparatively high investment in equipments is required.
5. Lack of flexibility. A change in product may require the facility
modification.

27
COMBINATION LAYOUT
● A combination of process and product layouts combines the advantages
of both types of layouts. A combination layout is possible where an item is
being made in different types and sizes. Here machinery is arranged in a
process layout but the process grouping is then arranged in a sequence
to manufacture various types and sizes of products. It is to be noted that
the sequence of operations remains same with the variety of products
and sizes. Figure on next slide shows a combination type of layout for
manufacturing different sized gears.

28
 COMBINATION LAYOUT
Product lay out

S P
T R S
O O T
R C O
E E C
R S K
O S R
O O
M L O
A M
Y
O
U
T
29
 FIXED POSITION LAYOUT
● This is also called the project type of layout. In this type of layout, the
material, or major components remain in a fixed location and tools,
machinery, men and other materials are brought to this location. This type
of layout is suitable when one or a few pieces of identical heavy products
are to be manufactured and when the assembly consists of large number
of heavy parts, the cost of transportation of these parts is very high.
Ship building yard

Finished
• Material product (ship)
• Labour
• equipment

30
FIXED POSITION LAYOUT
Advantages
● The major advantages of this type of layout are:
1. Helps in job enlargement and upgrades the skills of the operators.
2. The workers identify themselves with a product in which they take
interest and pride in doing the job.
3. Greater flexibility with this type of layout.
4. Layout capital investment is lower.

31
GROUP LAYOUT
● The basic aim of a group technology layout is to identify families of
components that require similar of satisfying all the requirements of the
machines are grouped into cells. Each cell is capable of satisfying all the
requirements of the component family assigned to it.
● The layout design process considers mostly a single objective while designing
layouts. In process layout, the objective is to minimize the total cost of
materials handling. Because of the nature of the layout, the cost of equipment
will be the minimum in this type of layout. In product layout, the cost of
materials handling will be at the absolute minimum. But the cost
of equipment would not be at the minimum if the equipment
are not fully utilized.
● In-group technology layout, the objective is to minimize the
sum of the cost of transportation and the cost of equipment. So,
this is called as multi-objective layout.
32
GROUP LAYOUT
WY WXYZ

#1 mill #2 drill
X
Z

WYZ Y

33
GROUP LAYOUT
Advantages of Group Technology Layout
● Group Technology layout can increase—
o 1. Component standardization and rationalization.
o 2. Reliability of estimates.
o 3. Effective machine operation and productivity.
o 4. Customer service.
● It can decrease the—
o 1. Paper work and overall production time.
o 2. Work-in-progress and work movement.
o 3. Overall cost.
● Limitations of Group Technology Layout
● This type of layout may not be feasible for all situations.
If the product mix is completely dissimilar, then we may
not have meaningful cell formation.
34
Practice Question
● A fixed-position layout:
o Groups workers to provide for movement of information.
o Addresses the layout requirements of large, bulky projects such as
ships and buildings.
o Seeks the best machine utilization in continuous production.
o Allocates shelf space based on customer behavior.

35
ASSEMBLY LINE
● Assembly lines are a special case of product layout. In a general sense, the
term assembly line refers to progressive assembly linked by some material-
handling device.
● Assembly-line systems work well when there is a low variance in the times
required to perform the individual subassemblies. If the tasks are somewhat
complex, thus resulting in a higher assembly-time variance, operators down
the line may not be able to keep up with the flow of parts from the preceding
workstation or may experience excessive idle time.

36
LINE BALANCING
● Assembly-line balancing often has implications for layout. This would occur
when, for balance purposes, workstation size or the number used would have
to be physically modified
● The most common assembly-line is a moving conveyor that passes a series of
workstations in a uniform time interval called the workstation cycle time (which
is also the time between successive units coming off the end of the line). At
each workstation, work is performed on a product either by adding parts or by
completing assembly operations. The work performed at each station is made
up of many bits of work, termed tasks, elements, and work units.
Such tasks are described by motion-time analysis. Generally,
they are grouping that cannot be subdivided on the assembly
-line without paying a penalty in extra motions.

37
LINE BALANCING
● The total work to be performed at a workstation is equal to the sum of the
tasks assigned to that workstation. The line-balancing problem is one of
assigning all tasks to a series of workstations so that each workstation has no
more than can be done in the workstation cycle time, and so that the
unassigned (idle) time across all workstations is minimized.
● The problem is complicated by the relationships among tasks imposed by
product design and process technologies. This is called the precedence
relationship, which specifies the order in which tasks must be performed in the
assembly process

38
LINE BALANCING
The steps in balancing an assembly line are:
● Specify the sequential relationships among tasks using a precedence
diagram.
● Determine the required workstation cycle time C, using the formula
● C= Production time per day / Required output per day (in units)
● Determine the theoretical minimum number of workstations (Nt) required
to satisfy the workstation cycle time constraint using the formula
Nt = Sum of task times (T) / Cycle time (C)
● Select a primary rule by which tasks are to be assigned to
workstations, and a secondary rule to break ties.

39
LINE BALANCING
● Assign tasks, one at a time, to the first workstation until the sum of the
task times is equal to the workstation cycle time, or no other tasks are
feasible because of time or sequence restrictions. Repeat the process for
workstation 2, workstation 3, and so on until all tasks are assigned.
● Evaluate the efficiency of the balance derived using the formula:
Efficiency = Sum of task times (T) / (Actual number of workstations (N ) ×
Workstations cycle time (C))
● If efficiency is unsatisfactory, rebalance using a different
decision rule.

40
LINE BALANCING
● Example: The TOYOTA YARIS car is to be assembled on a conveyor belt. 500
cars are required per day. Production time per day is 420 minutes, and the
assembly steps and times for the wagon are given below. Find the balance that
minimizes the number of workstations, subject to cycle time and precedence
constraints.
task Task time description Task that must
(sec) preceed

A 45 Position rear axle support and hand fasten -

B 11 Four screws to nuts A
C 9 Insert rear axle B
D 50 Tighten rear axle support screws to nuts -
E 15 Position front axle assembly and D
F 12 hand Fasten with four screws to nuts C
G 12 Tighten front axle assembly screws C
H 12 Position rear wheel 1 and fasten hubcap E
I 12 Position rear wheel 2 and fasten hubcap E
J 8 Position front wheel 1 and fasten hubcap F,G,H,I
K 9 Position front wheel 2 and fasten hubcap j 41
LINE BALANCING
● Precedence Diagram
D

C
B
G
A
J K
H
D E

● Determine workstation cycle time. Here we have to convert

production time to seconds because our task times are in
seconds
C = Production time per day / Required output per day (in units)
= 420 min × 60 sec / 500 cars = 25200 / 500 = 50.4 secs
42
LINE BALANCING
● Determine the theoretical minimum number of workstations required (the
actual number may be greater)
Nt = T / C = 195 seconds / 50.4 seconds = 3.87 = 4 (rounded up)
● Select assignment rules.
a) Prioritize tasks in order of the largest number of following tasks:
Task Number of following tasks
A 6
B or D 5
C or E 4
F,G,H, or I 2
J 1
K 0

43
LINE BALANCING
● Our secondary rule, to be invoked where ties exist from our primary rule,
is :
b) Prioritize tasks in order of longest task time. Note that D should be
assigned before B, and E assigned before C due to this tie-breaking rule.
5. Make task assignments to form workstation 1, workstation 2, and so forth
until all tasks are assigned. It is important to meet precedence and cycle
time requirements as the assignments are made.

44
LINE BALANCING
Station Task Task time Remaining Feasible Task with Task with
(in sec) unassigned remaining most longest
time ( in sec) tasks followers operation
time
Station 1 A 45 5.4 Idle None
Station 2 D 50 0.4 Idle None
Station 3 B 11 39.4 C,E C,E E
E 15 24.4 C,H,I C
C 9 15.4 F,G,H,I F,G,H,I F,G,H,I
F 12 3.4 idle None
Station 4 G 12 38.4 H,I H,I H,I
H 12 26.4 I
I 12 14.4 J
J 8 6.4 idle None
Station 5 K 9 41.4 idle None

● Calculate the efficiency = = T / N C = 195 / (5 x 50.4) = 0.77 (77%)

● Evaluate the solution. An efficiency of 77 per cent indicates an
imbalance or idle time of 23 per cent (1.0 – .77) across the entire
line.
45
Practice Question
● An assembly line is to be designed for a product whose completion
requires 21 minutes of work. The factory works 400 minutes per day. Can a
production line with five workstations make 100 units per day?
o Yes, with exactly 100 minutes to spare.
o No, but four workstations would be sufficient.
o No, it will fall short even with a perfectly balanced line.
o Yes, but the line’s efficiency is very low.

46
CONCLUSIONS

47
ANY QUESTIONS

48
THANK YOU!

49