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INDUSTRIAL MANAGEMENT
PLANT LOCATION,
LAYOUT AND LINE
BALANCING
CHAPTER 2
consideration must be given to the safe location of the plant so that it does not impose a
CLIMATE :
Adverse climatic conditions at site will increase costs. Extremes of low temperatures will
require the provision of additional insulation and special heating for equipment and
piping. Similarly, excessive humidity and hot temperatures pose serious problems and
must be considered for selecting a site for the plant. Stronger structures will be needed at
direct new investment to preferred locations; such as areas of high unemployment. The
vary from one location to another. Similarly, local regulations on zoning, building codes,
nuisance aspects and others facilities can have a major influence on the final choice of the
plant site.
OBJECTIVES OF PLANT LAYOUT
The main objective consists of organizing equipment and
working areas in the most efficient way, and at the same
time satisfactory and safe for the personnel doing the
work.
Sense of Unity
The feeling of being a unit pursuing the same
objective.
Minimum Movement of people, material and resources.
Safety
In the movement of materials and personnel work
flow.
Flexibility
In designing the plant layout taking into account the
changes over short and medium terms in the
production process and manufacturing volumes.
OBJECTIVES OF PLANT LAYOUT
These main objectives are reached through the attainment
of the following facts:
Congestion reduction.
Elimination of unnecessary occupied areas.
Reduction of administrative and indirect work.
Improvement on control and supervision.
Better adjustment to changing conditions.
Better utilization of the workforce, equipment and services.
Reduction of material handling activities and stock in
process.
Reduction on parts and quality risks.
Reduction on health risks and increase on workers safety.
Moral and workers satisfaction increase.
Reduction on delays and manufacturing time, as well as
increase in production capacity.
All these factors will not be reached simultanesly, so the
best solution will be a balance among them.
PRINCIPLES OF PLANT LAYOUT
Minimum movement:
A good layout is one that permits the minimum movement between
the operations. The plant and machinery in case of product layout
and departments in case of process layout should be arranged as per
sequence of operations of most of the products.
Since straight line is the shortest distance between any two points,
men and materials as far as possible should be made to move along
the straight path
A door may be made in a wall or a hole may be drilled in a ceiling if
that eliminates or reduces material handling in place of stairs or a
distant door.
PRINCIPLES OF PLANT LAYOUT (CONT.)
Uni-direction flow:
A good layout is one that makes the materials move only in the forward
direction, towards stage of completion, with any backtracking.
Since straight line is the shortest distance between any two, points,
materials as far as possible should be made to move on the principle of
straight-line flow. And when straight line flow is not possible, other flows
like U-shaped flow, circular flow or zig zag flow may be adopted, but the
layout may ensure that materials move in the forward direction.
To ensure forward flow, equipment if necessary may be duplicated.
to supervise.
Every piece of positioning or screening or partitioning should be scrutinized
Maximum accessibility:
A good layout is one that makes all servicing and maintenance point readily
accessible.
Machines should be kept sufficiently apart and with reasonable clearance from
from obstructions.
PLANT LAYOUT PROCEDURE
Plant Layout Procedure - Phase 1 Information Gathering
Determine what will be produced
Determine how many will be produced
Determine what components will be made or purchased
Determine required operations
Determine sequence of operations
Set time standards for each operation
Product A
Product B
Shipping
And
Welding Grinder Inspection Receiving Painting
(C) FIXED POSITION OR LOCATION LAYOUT
man / labor
stationary
(D) COMBINED LAYOUT
Certain manufacturing units may require all three processes
namely intermittent process (job shops), the continuous process
(mass production shops) and the representative process combined
process [i.e. miscellaneous shops].
In most of industries, only a product layout or process layout or
fixed location layout does not exist.
Thus, in manufacturing concerns where several products are
produced in repeated numbers with no likelihood of continuous
production, combined layout is followed.
Generally, a combination of the product and process layout or
other combination are found, in practice, e.g. for industries
involving the fabrication of parts and assembly, fabrication tends
to employ the process layout, while the assembly areas often
employ the product layout.
In soap, manufacturing plant, the machinery manufacturing soap
is arranged on the product line principle, but ancillary services
such as heating, the manufacturing of glycerin, the power house,
the water treatment plant etc. are arranged on a functional basis.
(D) COMBINED LAYOUT (CONT.)
The following figure shows a combined position
layout :
Assembly
Stamping Welding Heat treatment A B C D E
2. TRADERS
When two outlets carry almost same merchandise, customers
usually buy in the one that is more appealing to them. Thus,
customers are attracted and kept by good layout i.e. good
lighting, attractive colours, good ventilation, air conditioning,
modern design and arrangement and even music.
All of these things mean customer convenience, customer
appeal and greater business volume. The customer is always
impressed by service, efficiency and quality.
Hence, the layout is essential for handling merchandise,
which is arranged as per the space available and the type and
magnitude of goods to be sold keeping in mind the
convenience of customers.
There are three kinds of layouts in retail operations today.
(a) Self service or modified self service layout
(b) Full service layout
(c) Special layouts
2. TRADERS (CONT.)
The self-service layouts, cuts down on sales clerks time and allow
customers to select merchandise for themselves. Customers should be led
through the store in a way that will expose them to as much display area
as possible, e.g. Grocery Stores or department stores. In those stores,
necessities or convenience goods should be placed at the rear of the store.
The use of colour and lighting is very important to direct attention to
interior displays and to make the most of the stores layout.
All operations are not self-service. Certain specialty enterprises sell to
fewer numbers of customers or higher priced product, e.g. Apparel, office
machines, sporting goods, fashion items, hardware, good quality shoes,
jewellery, luggage and accessories, furniture and appliances are all
examples of products that require time and personal attention to be sold.
These full service layouts provide area and equipment necessary in such
cases.
Some layouts depend strictly on the type of special store to be set up, e.g.
TV repair shop, soft ice cream store, and drive-in soft drink stores are all
examples of business requiring special design. Thus, good retail layout
should be the one, which saves rent, time and labour.
3. SERVICES CENTERS AND ESTABLISHMENT
Facilities and
Forecasting Capacity Equipment
Planning
Process
Selection
Work
Technological
Design
Change
QUESTIONS BEFORE SELECTING A
PROCESS
Balance delay (BD) = Total idle time for all workstations x100
Total available working time on all stations
= 1 LE
EXAMPLE 1:
In one company, production time available per day is 480
minutes and 40 units are required per day. The data is
shown below for nine tasks.
PRIORITY OF
TASK TIME
TASK
A 10 -
B 11 A
C 5 B
D 4 B
E 12 A
F 3 C,D
G 7 F
H 11 E
I 3 G,H
TOTAL TIME 66
QUESTION 1 :
Determine :
1. Identify precedence diagram.
2. Calculate:
i. Cycle time,
ii. Minimum number of workstations,
iii. Assign the work elements to
workstations.
SOLUTION 1:
1. Precedence diagram
5
10 11 C 3 7
A B F G
4
D 3
I
12 11
E H
SOLUTION 1:
2. Calculate :
S4
S1 S2 5 S6
10 11 C 3 7
A B F G
4
D 3
S3 S5 I
12 11
E H
EXAMPLE 2:
The company I engaged in the assembly of a wagon on a
conveyor. 500 wagons are required per day. Production time
available per day is 420 minutes. The other information is given
below regarding assembly steps and precedence relationships.
11 9 12
B C F
A 45
G 12
50 15 12 8 9
D E H J K
12
I
SOLUTION 2 :
ii) Cycle time.
N = Total time
Cycle time
= 191
50.4
= 3.79 4 work stations
SOLUTION 2 :
iv) Group of work stations accordingly.
S3
S1
B C F
A
S4
G
S2
D E H J K
I
SOLUTION 2 :
CPM Limitations
While CPM is easy to understand and use, it does
not consider the time variations that can have a
great impact on the completion time of a complex
project. CPM was developed for complex but fairly
routine projects with minimum uncertainty in the
project completion times. For less routine projects
there is more uncertainty in the completion times,
and this uncertainty limits its usefulness.
WHY THE CPM?
The formally identifies tasks which must be
completed on time for the whole project to be
completed on time.
Identifies which tasks can be delayed for a while if
resource needs to be reallocated to catch up on
missed tasks.
It helps you to identify the minimum length of time
needed to complete a project.
The CPM determines both the early start and the
late start date for each activity in the schedule.
PERT
The Program Evaluation and Review Technique
(PERT) is a network model that allows for randomness
in activity completion times. PERT was developed in the
late 1950's for the U.S. Navy's Polaris project having
thousands of contractors. It has the potential to reduce
both the time and cost required to complete a project.
Hence there was a strategic emphasis on completing the
Polaris project as quickly as possible, cost was not an
issue. However no one had ever build a submarine
launched intercontinental ballistic missile before, so
dealing with uncertainty was a key issue. PERT has the
ability to cope with uncertain activity completion times
(e.g. for a particular activity the most likely completion
time is 4 weeks but it could be any time between 3
weeks and 8 weeks).
PERT (CONT.)
The Network Diagram
In a project, an activity is a task that must be performed and
an event is a milestone marking the completion of one or more
activities. Before an activity can begin, all of its predecessor
activities must be completed. Project network models
represent activities and milestones by arcs and nodes.
PERT is typically represented as an activity on arc network,
in which the activities are represented on the lines and
milestones on the nodes. The Figure 2.0 shows a simple
example of a PERT diagram.
The milestones generally are numbered so that the ending
node of an activity has a higher number than the beginning
node. Incrementing the numbers by 10 allows for new ones to
be inserted without modifying the numbering of the entire
diagram. The activities in the above diagram are labeled with
letters along with the expected time required to complete the
activity.
FIGURE 2.0 : PERT NETWORK
STEPS IN PERT PLANNING PROCESS
PERT planning involves the following steps:
1. Identify activities and milestones
The activities are the tasks required to complete the project. The milestones
are the events marking the beginning and end of one or more activities.
2. Determine activity sequence
This step may be combined with the activity identification step since the
activity sequence is known for some tasks. Other tasks may require more
analysis to determine the exact order in which they must be performed.
3. Construct the Network Diagram
Using the activity sequence information, a network diagram can be drawn
showing the sequence of the serial and parallel activities.
4. Estimate activity times
Weeks are a commonly used unit of time for activity completion, but any
consistent unit of time can be used. A distinguishing feature of PERT is its
ability to deal with uncertainty in activity completion times. For each
activity, the model usually includes three time estimates:
Optimistic time (OT) - generally the shortest time in which the activity
can be completed. (This is what an inexperienced manager believes!)
Most likely time (MT) - the completion time having the highest
These times are calculated using the expected time for the relevant
activities. The ES and EF of each activity are determined by working
forward through the network and determining the earliest time at
which an activity can start and finish considering its predecessor
activities.
STEPS IN CPM PROJECT PLANNING
The latest start and finish times are the latest times that an activity
can start and finish without delaying the project. LS and LF are
found by working backward through the network. The difference in
the latest and earliest finish of each activity is that activity's slack.
The critical path then is the path through the network in which none
of the activities have slack.
The variance in the project completion time can be calculated by
summing the variances in the completion times of the activities in
the critical path. Given this variance, one can calculate the
probability that the project will be completed by a certain date.
Since the critical path determines the completion date of the project,
the project can be accelerated by adding the resources required to
decrease the time for the activities in the critical path. Such a
shortening of the project sometimes is referred to as project crashing.
6. Update as project progresses
Make adjustments in the PERT chart as the project progresses. As
the project unfolds, the estimated times can be replaced with actual
times. In cases where there are delays, additional resources may be
needed to stay on schedule and the PERT chart may be modified to
reflect the new situation.
BENEFITS AND LIMITATIONS OF PERT
Benefits of PERT
PERT is useful because it provides the following information:
Expected project completion time.
Probability of completion before a specified date.
The critical path activities that directly impact the completion
time.
The activities that have slack time and that can lend resources to
critical path activities.
Activities start and end dates.
Limitations of PERT
The following are some of PERT's limitations:
The activity time estimates are somewhat subjective and depend
on judgment. In cases where there is little experience in
performing an activity, the numbers may be only a guess. In other
cases, if the person or group performing the activity estimates the
time there may be bias in the estimate.
The underestimation of the project completion time due to
alternate paths becoming critical is perhaps the most serious.
TERMS ARE USED
Network A graphical representation of the project and it
consists of series of activities arranged in a logical sequence
and show the interrelationship between the activities.
Activities A physically identifiable part of the project,
which consumes time and resources. Each activity has a
definite start and end . Activity is represented by an arrow
( ).
Event An event represents the start or the completion of
an activities. The beginning and end points of an activity are
events.
Example : Machining a component is an activity
Start machining is an event
Machining completed is an event
1 c 3
a f f
s
i
t d n
a
b g i
r
s
t e 4
2 h
SOLUTION 1 (CONTINUED):
ii. A completed sample AON network
a c
f
s f
i
t
n
a d i
r
s
t
b h
e g
DRAW DIAGRAM USING NODES
The node have 3 part : NO., EST and LST
EST
NO.
LST
4 F 19
2 18
5 33
15 C
A D
4 6 3
0 8 20 36
B G H 9
1 0
4 8
6 20 36
8 12 10
E J 5
7 7 20 31
3 K L
11
7 20
8 31
9 11
EXAMPLE 3 : CRITICAL PATH
Find the critical path and critical time
Table 2
Task Predecessor Duration (days)
A - 5
B - 4
C A 3
D A 4
E A 6
F B, C 4
G D 5
H E 6
I F 6
J G, H 4
SOLUTION 3 : CRITICAL PATH
9 G 14
4 12 5 7 17
D
4
5 E 11 H 17
2 6 5 8
5 11 6 17 J
A C 4
5 3
0 8 21
1 6 10 21
0 11
B I
4 6
8 F 12
3 9
11 4 15
Critical path : A E H J
Critical time : 21 days
FLOATS / SLACKS
Float (slack) - amount of time that a task can be delayed without
causing a delay to:
subsequent tasks (free float)
project completion date (total float)
The slack of an event is the difference between the latest and earliest
event times.
Slack = LST EST
The events with zero slack time are known as critical events.
Example :
7 4 17
5 17
7 18
9 17
Slack event 5 = 17 7 = 10
Slack event 7 = 18 4 = 14
Slack event 9 = 17 17 = 0
Critical event / slack = 0 , so event 9 is critical event.
FLOAT / SLACKS (CONT.)
Total float is the spare time available on any given
activity if the tail event occurred at its earliest time
and the head event at its latest time.
Total float (TF) = Time latest at head Time earliest
at tail Activity duration
Example :
0 B 8
1 4
0 8 8
Example :
4
B 12
3 4
4 2 15
Activity Duration
12 20
13 25
23 10
24 12
34 6
45 10
SOLUTION 4 : FLOAT / SLACKS
The network diagram.
30
3
30
D
A
25 6
10 C
0 B 20 E 46
1 2 36 F 5
4
0 20 20 10 46
12 36
Critical path : B E F
SOLUTION 4 : FLOAT / SLACKS (CONT.)
The floats and slacks for each activity.
Activity Duration Earliest Latest Float Slack
Start Finish Start Finish Total Free
12 20 0 20 0 20 0 0 0
(Critical)
13 25 0 25 5 30 5 5
23 10 20 30 20 30 0 0 0
(Critical)
24 12 20 32 24 36 4 4
34 6 30 36 30 36 0 0 0
(Critical)
45 10 36 46 36 46 0 0 0
(Critical)
SOLUTION 4 : FLOAT / SLACKS (CONT.)
The slack for each activity.
2 20 20 0 Critical
3 30 30 0 Critical
4 36 36 0 Critical
5 46 46 0 Critical
Critical path : 1 2 3 4 5
EXERCISE :
Draw the network and compute the critical path.
SOLUTION :
7 c 13 g 16
a A C G h
7 6 13 3 16
7 2
S
T 0 18
A
R
H 18
T 0
b h
3 d 6 e 9
3 B D E 2
10 3 13 3 16
f e
5 8 3
F
13
THE END