Jpm Pom Course Mat 5

7/31/2019 Jpm Pom Course Mat 5

1/21

SITE SELECTION MODELS

QUALITATIVE QUANTITATIVE

FACTOR RATING(comparative)

Transportation

(Load & Distance)

Transportation

(Distance)

ECONOMY

Break EvenAnalysis

(comparative)

MINI MAX(Exact Location)

Single Facility(Exact Location)

Simple Median(comparative)

Gravity(Exact Location)

Exact Location : (i) Mini Max (ii) Gravity Model (iii) Single Facility

Comparative Location : (i) Factor Rating (ii) BE Analysis (iii) Simple Median


2/21

1) FACTOR-RATING Method (Qualitativemethod):

Procedure :

1) Select the criteria which play important role for selection of plantlocation for the proposed particular industry.

2) Allot FACTOR RATINGs for each Criteria / Factor according toits relative importance for the particular industry.

3) Select alternative locations among which the best one can be

selected for the proposed industry.

4) Allot LOCATION RATINGs against each criteria / Factor, foreach alternative site-location.

5) Multiply Factor Ratings by Location Ratings to get PRODUCT

RATINGs for each Criteria / Factor, for each alternative sitelocations.6) Sum up such PRODUCT RATINGs for each alternative location,

which gives the TOTAL RATING SCORE of that alternativelocation.

7) The highest Total Rating Score indicate the best site location forh r i l r in r m n h i n l i .


3/21

FACTOR RATING Model

Special Features of FACTOR RATING Location Model :

1) It is a Qualitative Method for selecting Facility Location.

2) It may consider all possible important deciding Factorsinfluencing the selection of the plant site.

3) It gives due weightage on the importance of each

deciding Factors influencing the selection of the plantsite.

4) It also considers the suitability of the proposed site /location against each deciding Factors being considered.

5) The method is to select the best location by comparingamong a number of proposed sites but, not to find theEXACT BEST Site Location.


4/21

Problem-1 :

For a proposed thermal power plant, the Location-Ratings for differentCriteria/Factors, of the two alternative locations A & B, are given below.Select better site location between A & B, by Factor Rating Method.

Factors LocationRating for A

LocationRating for B

FactorRating

ProductRating of A

ProductRating of B

Proximity toFuel 5 6

8 5 x 8 = 40 6 x 8 = 48Availability of

Water 7 9 10 7 x 10 = 70 9 x 10 = 90

Proximity toDemand 6 5 5 6 x 5 = 30 5 x 5 = 25Availability of

labour 7 6 7 7 x 7 = 49 6 x 7 = 42Access to Rail &

Road 6 6 6 6 x 6 = 36 6 x 6 = 36Infrastructural

Facility 5 4 6 5 x 6 = 30 4 x 6 = 24Legislation &

Taxation 4 6 5 4 x 5 = 20 6 x 5 = 30

TOTAL RATING SCORE 275 295

Total Rating Score of Site B is greater than Total Rating Score of Site A.

So, by Factor Rating Method Site B is better. Ans


5/21

2) Gravity Location Model (Load-Distance):

Here loads and Euclidean (ie diagonal ie shortest) distances aresimultaneously

considered, instead of Rectilinear distances, between

the facilities and each alternative site locations.

Euclidean distance between each facility and any site location, Di isgiven by,

Di2 = (x xi)2 + (y yi)2 ,

And let the load (quantity of material) to be transported in each case

be Wi

The corresponding transport cost for the site location at (x,y),

C (x,y) = K. Wix [Di ] =K. {Wi x [(x xi)2 + (y yi)2 ]}

For minimizing C(x,y) , applying Minimization theory d [C (x,y) ] = 0 & d [C (x,y) ] = 0

d x dy which gives the only one best site location (x*, y*) as

x* = Wi . xi & y* = Wi . yi Wi Wi


6/21

Special Features of Gravity Location Model :

1) It is a Quantitative Method for selecting Facility Location.

2) It is based both on LOADS as well as DISTANCES of

transport between the facilities and the plant site.

3) The distances are calculated as EUCLIDEANdistances

4) By this method the EXACT BEST Location of theplant is directly found out and the method is to selectthe best location notby comparing among a number ofproposed or available plant-locations.

5) By this method the only one BEST Location of theplant/facility is found out.


7/21

Problem-2: Gravity Location ModelSelect by Gravity Location Model method the best Plant site if theavailable data on the existing Facilities are as given below,

Existing Facilities Location-Coordinate Load to/fromFacilities (unit)

F1 20, 30 755

F2 10, 40 900

F3 30, 50 450

F4 40, 60 500

Answer-6:

Facility Xi Yi Load(Wi) Wi . Xi Wi . Yi

F1 20 30 755 15,100 22,650

F2 10 40 900 9,000 36,000

F3 30 50 450 13,500 22,500

F4 40 60 500 20,000 30,000

SUM 2,605 57,600 111,150

X* = Wi . Xi =57,600 = 22.111 Wi 2,605Y* = Wi . yi =111,150 = 42.668 Wi 2,605


8/21

3) SIMPLE MEDIAN Model (Load-Distance): Here, best site location among more than one alternative proposed or

available sites is selected by COMPARISON among them, where theTotal Transportation Cost is least [based on the value of Total

(Load x distance x Cost Rate of Transportation) ]. F1 , F2 , F3 , F4 , are the facilities.

Total Transportation Cost for any alternative proposed site A isgiven by [(Wi x DA-i) x Ci] , where, i = facility no.,

DA-i = I(Xi X*)I + I(Yi Y*)I , Wi is the load of transportationcorresponding to each facility and Ci : corresponding Unit Cost of

transportation

F4

F1

F2

F3

SA

SB

F1 , F2 , F3 , F4 , are the facilities.

A, B, are alternative site locationHere, Site SA is better than SB, if

[(Wi x DA-i) x Ci] < [(Wi x DB-i) x Ci]

X

Y

x2

y2DA2


9/21

SIMPLE MEDIAN Model

Special Features of Simple Median Model :

(i) It is a Quantitative Method for selecting Facility Location.

(ii) This model considers Transport Cost of materials basedon the combination effect of both the loads as well asdistances (between the plant location and the facilities)to be transported

(iii) The method considers RECTILINEAR distances (insteadof Euclidean distances, between the facilities and sitelocation).

(iv) The method is to select the best location among anumber of proposed sites by comparing the transportcost, but NOT to find theEXACT BEST Site Location.

P bl 3


10/21

Problem-3 : SIMPLE MEDIAN ModelSelect by Simple Median Model method the better Plant site between twoavailable site options SA (20,10) and SB ( 40,50), if the available data onthe existing Facilities are as given below,

Existing Facilities Location-Coordinate Load to/from

Facilities (unit)

Unit Transport Cost

(Rs / unit distance /unit load)

F1 20, 30 755 100

F2 10, 40 900 300

F3 30, 50 450 200

F4 40, 60 500 250

Answer-3:

For site SA (20,10)

Facility Location I Xi X* I I Y

i Y* I

DiLoad(W

i)

Ci TC= DiWi CiF1 20, 30 2020 = 0 30-10 = 20 0+20 = 20 755 100 15,10,000

F2 10, 40 10-20 = 10 40-10 = 30 10+30 = 40 900 300 108,00,000

F3 30, 50 30-20 = 10 50-10 = 40 10+40 = 50 450 200 45,00,000

F4 40, 60 40-20 = 20 60-10 = 50 20+50 = 70 500 250 87,50,000

TOTAL TCA = Rs 255,60,000


11/21

SIMPLE MEDIAN Model (Problem-3)

For site SB (40,50)

Facility Location I Xi X* I I Yi Y* I Di Load(Wi) Ci TC= DiWi Ci

F1 20, 30 2040 = 20 30-50 = 20 20+20 =40 755 100 30,20,000

F2 10, 40 10-40 = 30 40-50 = 10 30+10 = 40 900 300 108,00,000

F3 30, 50 30-40 = 10 50-50 = 0 10+0 = 10 450 200 9,00,000

F4 40, 60 40-40 = 0 60-50 = 10 0+10 = 10 500 250 12,50,000

TOTAL TCB = 159,70,000

So,by Simple Median Model method, we getTotal Cost of Transport for site A, TCA = Rs 255,60,000

And Total Cost of Transport for site B, TCB = Rs 159,70,000

Since, TCB


12/21

PLANT

L A Y O U T


13/21

Objective of Plant Layout :1. Minimum inter process Material Handling

2. Improved Productivity

3. Improved Production rateby reducing Production Cycle Time.

4. Good Flexibility of Process Sequence for various jobs or wideproduct-range (specially applicable for Job shop and Batch process)

5. Better Control over Process-flow as well as Materials-flow

6. Access to and Ease of maintenance & repair of Machineries

7. Improved Occupational Safety8. Reduced WIP inventory

9. Minimizing Capital Investmentin duplication of machineries

10. Scope / Provision for future expansion.

Process Layout Product Layout Fixed Position

or Functional Layout or Line Layout Cellular Layout

Plant Layout


14/21

1 7 3 6

2 4

8 9

1 : Raw material Stores2 : Foundry (for Casting)3 : Lathe Section/shop4 : Shaping Section/shop

5 : Milling Section/shop6 : Drilling Section/shop7 : Grinding & Finishing Shop8 : Inspection9 : Packing Section10: Stores of Finished ProductProcess Layout

1 2

3 4

5 6

3 7

A

A 7

Product Layout

5

10

Process Sequence :Procure> 1 2 3 5 7 6 4 3 7 8 9 10> delivery

6

A : Assembly/fitting

9 10

1) P L t


15/21

1) Process Layout : It is characterized by keeping all similar machines or equipment

(having same function) at one location or shop or section.Example: Layout based on Foundry, Lathe shop, Grinding shop,Drilling shop, Milling shop, Welding shop, Painting shop, Packing

shop, stores, Inspection, Testing House, etc. Machines are arranged at their respective shop or section,

according to their functions. In this type of layout jobs are moved from Shop/section to

shop/section, for processing.

# This type of layout is generally adopted for the industriesengaged inJob-shopandBatch process production.

Demerits of Process Layout :i) Greater material handling (due to back-tracing of material flow path),

leading to more cost & time

ii) Production rate is reduced (due to longer material handling)

iii) Automatic material handling is very difficultiv) WIP Inventory becomes large

v) Production Control and material-flow Control become difficult

vi) Need of more Production Coordination (inter-shop or interdepartment/section)


16/21

Merits of Process Layout :

i) Less duplication of Machine or equipment, leading to less Capitalinvestment

ii) Better Utilization of machines or equipment

iii) Greater flexibility of production (varieties of jobs can be done at atime)

iv) Better (specialized) and more efficient (with higher expertise)supervision is possible

v) Varieties of jobs (for different job order) improves operators skill,expertise and also satisfaction.

vi) Better product quality available due to operators improved skill,specialization & expertise developed in doing same type of job /function

vii) Breakdown of one machine does not affect much the totalproduction process.

2) Product Layout :


17/21

2) Product Layout : Product Layout implies that various operations or processes on the input

material or Raw material are performed in a pre-designed sequence and theequipment or machineries are located (arranged) in order of Product-Flow-line (required process sequence).

In this type of layout, jobs are moved from work-center to work-center, as

per the process flow-line without any back-tracing of material flow-path(only forward movement and no backward movement in material-flow-path).

This type of layout is generally adopted for the industries engaged ini) Mass production / continuous production, and

ii) Great volume Production of the same product and continuously.

Merits of Product Layout :

i) Less material handling (due to no back-tracing of material flow path),reducing cost & time for production

ii) Production rate increases as the same and standard operational process ateach work station is repeated continuously.

iii) Less idle-time in material handling leads to increase production.

iv) Automatic material handling is possible and is preferred.

v) WIP Inventory becomes negligible, if production line is well balanced.vi) Inspection, Production Control and Coordination are simple and easier

vii) Less operators skill is required, same work skill is required.viii) Less Floor space is required as WIP inventory is negligible.

D i f P d L


18/21

Demerits of Product Layout :

i) More chance of duplication of Machines or equipment, leading tomore Capital investment

ii) Less possibility of full utilization of machines or equipment

iii) Less or no flexibility of production process (meant only forparticular product and process required for standard products)

iv) Same and repetition of (standard) jobs (no varieties of job) lead toless improvement of operators skill & expertise and more jobmonotony.

v) Breakdown of even one machine may seriously affect the totalproduction process.

3) Fixed Position Layout


19/21

3) Fixed Position Layout : This layout is adopted in case of Manufacturing

less number of huge size item (like Shipbuilding, manufacturing of huge Aircraft, etc)and in case of projects (like Launching Stationfor Space Craft, Missile, etc), where it is noteconomical and possible to move the job fromwork-center to work-center.

Here, the huge Job is fixed at its location and theequipment / machineries / facilities andoperators move from one place to anotherplace of the job according to processrequirement

Demerits of Fixed Position Layout:i) Requirement of High-skilled worker.

ii) Setting time of Machine & Tool is high.

iii) Poor utilization of manpower and machines.

iv) Equipment handling cost is more.

M it f Fi d P i i L


20/21

Merits of Fixed Position Layout:i) Various activities can be taken up simultaneously and in

parallel at different locations of the job, for fastercompletion of job.

ii) The progress of work can be regulated to a great extentby employing simultaneously same or different activitiesat different locations.

iii) It is possible to assign (engage) more than one operatorfor the same operation (say drilling or grinding orpainting) on the same job to reduce job completion time.

iv) Progress rate can be improved highly by engaging morenumber of workers as and when required, sinceimmediately after completion of the work the workerscan be withdrawn without any huge compensation.

v) Material Handling and cost of material handling becomecomparatively small and easy.

vi) Total Overhead Cost is reduced to a great extent.

vii) Maximum flexibility for production planning and

progress


21/21

J O B1

2

3

1

2

3

4

5

Equipment & Tool

Facility

Fixed Position Layout

Documents

Jpm Pom Course Mat 5