PLANNING OF FACILITIES AND

MATERIAL HANDLING SYSTEMS

Dr.M.B.Kiran

FACILITIES PLANNING
Facilities Planning helps an organization to
achieve supply chain excellence.
A supply chain is a system of organizations,
people, activities, information, and resources
involved in moving a product or service from
supplier to customer.

Components of supply chain

Supply chain includes all the entities (
Company, Raw material suppliers,
transporting companies, Employees, Bankers,
Insurance companies, warehouse, subcontractors, etc.) from supplier of the raw
material to the Customer

Supply chain excellence

supply chain excellence can be achieved in six
levels Business as usual
Link Excellence
Visibility
Collaboration
Synthesis
Velocity

Business as usual
Business as usual means to maximize individual
departments ( e.g. Marketing, R&D, Manufacturing,
etc.) effectiveness.
Where the focus is on achieving or meeting
departmental goals.
Example :
Manufacturing Dept.- To manufacture 100 cars in a month
Sales Dept. To sell 50 bikes in a month.

Link Excellence
All departments working together as a team
to meet organizational goals.
Example : An Organization goal can be to
make a profit of Rs.23 crores in Q1 of 2014.

Visibility
Visibility brings in light to all the
links/elements of the supply chain.
Helps in understanding the role of different
departments/links/elements.
Visibility requires sharing information
(software/technology) with all the entities of
supply chain.

Collaboration
Collaboration helps in meeting the demand of the
market place.
Collaboration requires right partnerships and use of
proper technologies.
Helps in maximizing customer satisfaction and
minimizing inventories.

Synthesis
Synthesis means continuous improvement.
Synthesis is a unification process.
Synthesis gives raise to improved customer
satisfaction, supply chain integration (through
partnerships) and cost reduction.

Velocity
Velocity is the synthesis at a great speed
Todays business demand speed
Customers expect their products to arrive quickly

SCOPE OF FACILITIES PLANNING

Facilities Planning is being used in
Manufacturing companies
Hospitals
Institutions
Airport
Banks etc.

FACILITIES PLANNING ACTIVITIES

FACILITIES PLANNING SIGNIFICANCE

Helps in increasing productivity

Reducing costs
Employee health & safety
Energy conservation
Fire protection and security

Objectives

Improve customer satisfaction

Increase return on assets (ROA)
Maximize speed for quick customer response
Reduce costs
Integrate supply chain
Effective utilization of people, equipment,
space and energy
Employee safety and job satisfaction

FACILITIES PLANNING PROCESS

Define the objective of the facility (product
design.)
Analyze the problem ( process design and
schedule design)
Determine the space requirements for all the
activities
Evaluate the alternatives
Select the preferred design
Implement the design

Factors affecting facilities design

Product Design
Process Design
Schedule design

Product Design
Product design involves activities like What product is to be produced?
Detail design of individual components

Product Design

Component Design

Exploded assembly design

Process Design
Process designer is responsible for
determining how the product is to be
produced? (Make or Buy Decisions).
Types of Process Planning Manual and
Computer Aided Process Planning (CAPP)
CAPP is used for process design

Process planning
In manufacturing, the goal is to produce components that
meet the design specifications. The design specification
ensures the functionality aspect. Next step to follow is to
assemble these components into final product.
Process planning acts as a bridge between design and
manufacturing by translating design specification into
manufacturing process detail.
Hence, in general, process planning is a production
organization activity that transforms a product design into a
set of instruction (sequence, machine tool setup etc.) to
manufacture machined part economically and
competitively.

Process planning Software

Process selection
Inputs to process selection:
List of components (part drawings)
description of components (part drawings)
number of parts to be produced.

Outputs to process selection:

Route sheet ( contains name of the component,
equipments required, Raw material requirement)

Part drawing

Assembly drawing

Schedule Design
How much to produce?
When to produce?

Schedule Design
Schedule Design affects the following
Machine selection
No. machines
No. shifts
No. employees
Space requirements
Type and no. Material handling equipments
required

Flow, Space and Activity relationships

Flow depends on lot sizes, unit load sizes, ma
terial handling equipment, layout , Building
configuration
Space depends on lot sizes, storage system,
type of production equipment, size of
production equipment, layout, material
handling equipment.

Departmental planning
Product planning dept. (High volume, Low
Variety).
Fixed materials location planning (Low
volume, Low Variety).
Product family planning dept. (Medium
volume, Medium Variety).
Process planning dept. (Low volume, High
Variety).

Departmental planning

Integrated cellular manufacturing

system

Activity relationships
Organizational relationships influenced by
span of control
Flow relationships- Flow of materials, people,
equipments, information, money
Control relationships- centralized vs.
decentralized materials control, levels of
automation etc.

Material management system

Material flow system-for product

planning Department

Material flow system-for Fixed

materials location planning
Department

Material flow system-for Product

family planning Department

Material flow system-for Process

planning Department

Material flow system

Physical distribution system

Flow patterns
Flow within department
Flow between departments

Flow patterns

Flow between departments

Impact of interruptions on flow paths

Flow measurement
Quantitative measurement technique
Qualitative measurement technique

Quantitative measurement technique

Flow patterns indicating order of flow

Qualitative Flow measurement

Space requirements
Workstation includes space for Machines,
Personnel and Materials.
Equipment space for a workstation consists of
space for The equipment
Machine travel
Machine maintenance
Plant services

Space requirements
The materials areas for workstation consists of
space for :
Receiving and storing inbound materials
In-process materials
Storing out-bound materials shipping
Storing and shipping for waste and scrap
Tools, fixtures, Jigs, Dies and maintenance
materials

Space requirements
The personnel area for workstation consists of
space for :
The operator
Material handling
Operator ingres (Entrance) and egres (Exit)

Plant Layout

Personal requirement

Employee parking
Storage of employees belongings
Restrooms
Food services
Health services

Employee parking
Determine the no. automobiles to be parked
Determine the space required for each
automobile.
Determine the available space for parking
Determine the alternative layouts
Select the best layout

Storage of employees belongings

Lunch box
Briefcase
Clothes
Others

Restrooms
Water closets
1
2
3

Employees
1-15
16-35
36-55

Lavatories
1
2
3

Health services

Pre-employment exam
First aid treatment
Major treatment
Dental care

Material flow system-for product

planning Department

Product layout
Product oriented plant layout
Advantages:

Reduced material handling activities.

Work In Process almost eliminated.
Minimum manufacturing time.
Simplification of the production planning and control systems.
Tasks simplification.

Disadvantages:

No flexibility in the production process.

Low flexibility in the manufacturing times.
High capital investment.
Every workstation is critical to the process.- The lack of personnel or
shut down of a machine stops the whole process.
Monotonous work.

Material flow system-for Process

planning Department

Process oriented layout

Process oriented plant layout
Advantages
Variety of products can be produced
Better utilization of machines
reduction of distance and material handling costs

Main disadvantages of this layout:

Low material handling efficiency when comparing to a plant layout
oriented to the product.
Low production volume
Scheduling is difficult

Material flow system-for Fixed

materials location planning
Department

Fixed position layout

Advantages Production of Large and bulky product is
possible
Disadvantages Low production volume
Low product variety

Cellular layout
Advantages Similar components, having medium demand,
belonging to a product family can be produced
economically
Disadvantages Medium Production volumes
Medium Product Variety

Plant Layout for a Warehouse

Objective: Optimal relationship between space and material handling costs.

Aspects to be considered: cubic space utilization, storing equipment and methods,
material protection, allocation of different parts, etc.

A warehouse layout is more complicated when:

The different customer orders take into account a high number of references.
There are frequent orders of low number of units for the same product.
In this cases, the material handling costs for each roundtrip move would be excessively high.
Solutions for this problem: Aggregation of units for several orders, or establishment of optimal
routes for each order.
Zones

Zones

Control
station

Click to add title

Shipping
doors

Tractor
trailer
Tractor
trailer
Feeder
lines

Feeder
lines

Overflow

Office facility planning

Inputs:
Data collection regarding the facility
objectives
Information regarding the be activities to be
performed to meet these objectives.
Approaches to office planning:
Open office- e.g. software companies
Closed office- e.g. Govt.offices, Hospitals

Modern office

Benefits of open offices

Improved communication
Improved supervision
Better access to files and equipment
Easier to illuminate, cool and ventilate

Objections to open offices

Lack of privacy
Lack of status recognition
Difficult in controlling noise
Easy access for interruptions and interference

Closed offices
Is recommended when the work is
confidential
When noise from various sources cannot be
masked

Area requirements

Presidents office office : 250-400 sq.ft.

Vice presidents office: 150-250 sq. ft.
Executive office : 100-150 sq.ft.
Managers office : 80-110 sq. ft.
Conference room: 15 sq. ft. per person
Reception area: 125-200 sq.ft (receptionist+ 24 people)

Office suites

Telephone lines
Firewall / router
Modular furnishing
Computers with basic software
Shared administrative office staff
Mailroom facilities
Photocopier
Local area network (LAN) with internet facility
Receptionists
Security personnel
Conference room

Office planning in high tech

environments
1. Speed to market
2. Capital preservation
3. Scalability

Re-layout design
The plant layout process starts at an aggregate
level, taking into account the different
departments. As soon as we get into the details,
the different issues arise, and the original
configuration may be changed through a
feedback process.
Most (if not all of them) layouts are designed
properly for the initial conditions of the business,
although as long as the company grows and has
to be adapted to internal and external changes, a
re-layout is necessary.

Re-layout requirements
The reasons for a re-layout are based on 3 types of
changes:
Changes in production volumes.
Changes in processes and technology.
Changes in the product.

The frequency of the re-layout will depend on the

requirements of the process.

When re-layout is required?

Symptoms that allow us to detect the need for a re-layout:

Congestion and bad utilization of space.

Excessive stock in process at the facility.
Long distances in the work flow process.
Simultaneous bottle necks and workstations with idle time.
Qualified workers carrying out too many simple operations.
Labor anxiety and discomfort. Accidents at the facility.
Difficulty in controlling operations and personnel.

Stores layout

Stores layout

Stores layout

Plant layout procedure

Procure the basic data

Analyze the basic data
Design the productive process
Plan the material flow pattern
Consider the general material handling plan
Calculate the equipment requirement
Plan individual workstation
Select specific material handling equipment

Plant layout procedure

Coordinate groups of related operations

Design activity relationships
Determine storage requirements
Plan service and auxiliary services
Determine space requirements
Allocate activities to total space
Consider building types
Construct master layout

Plant layout procedure

Evaluate, adjust and check the layout

Obtain approvals
Install the layout
Follow up on implementation of the layout

Plant layout procedure

Analyze the product to be produced
Determine the process required to
manufacture the product
Prepare layout planning charts
Determine workstations
Analyze storage area requirements
Establish minimum aisle width
Establish office requirements

Plant layout procedure

Consider personnel facilities and services
Survey plant services
Provide for future expansion