8/6/2019 vijay chnd

1/17

PLANT LOCATION

The location of chemical plant can have a very marked efforton the success or otherwise of a commercial venture. Theguiding principle is that the plant should be located wherethe cost of production and distribution of products are a

minimum bearing in mind factors such as space for futureexpansion and general amenities of the district. It isconvenient to list the more important factors influencingplant location as follows. Market Area Raw Materials Supply

8/6/2019 vijay chnd

2/17

Transport facilities Availability of labour Availability of utilities (water, Power, etc.) Availability of land Effluent disposal Climate Political & Strategic considerationsMarketing Area:

The location of the plant can be suitably selected depending on

the availability of the Product in that area. If the market isclose by the plant the transportation costs can be reduced to alarge extent. Since the product is a solid the cost oftransportation has to done using trucks. If the customer isvery close to the plant the product can be transportedusing conveyers.

Raw Material Supply:

The availability and price of the raw material is also a keycomponent to determine the plant location. Here in thisprocess since p-Xylene is a raw material which is a by-productof the petrochemical industry and the price of whichfluctuates to a large extent it is preferable to locate the plant

close to a refinery which deals with the petrochemicalproducts.

Transport:

8/6/2019 vijay chnd

3/17

The transport of material to and from the plant will a primefactor to determine the location of the plant. It is alwayspreferred that the plant has all the facility of all the threemodes of transport (Rail, road and waterway).

Availability of labour:

Labour is necessary from the construction phase of the plantto the production phase. The location of the plant should besuch that there is availability of human resource around thearea. Usually the skilled labourers are picked up from outside

the site area. But the unskilled labourers are also in need.

Availability of Utilities:

The process requires a large quantity of water for cooling andalso for the emergency requirements of the plant. Therefore itis always essential that there is a source of water near theplant. Rivers are generally preferred as a source of water.

Power is another major utility. The power supply to the plantshould be undisturbed. All most all the equipments requirepower to work. It is always preferable to generate the powerrequired to run the plant.

Effluent Disposal:

The waste that is produced is generally in the form of liquid.

The effluents are disposedgenerally to the sea. Therefore there should be a provision forthis kind of disposal.

Land:

8/6/2019 vijay chnd

4/17

Sufficient suitable land must be available for the proposedplant for future expansion. The land should be ideally flat,well drained and have suitable load bearing characteristics.

Climate:

Adverse climate conditions at a site will increase costs.Abnormally low temperatures will require the provision ofadditional insulation and special heating for equipments andpipe runs. Stronger structure is necessary in locations subjectto high winds.

Political and StrategicConsiderations:

Capital grants concessions and other inducements are oftengiven by governments to direct new investment to preferredlocations such as areas of high unemployment. Theavailability of such grants can be the overridingconsideration in site selection. The ideal location for the plant

will be any port city in the state of Gujarat orMumbai. Thesite is selected on the basis of availability of raw materialsand a demanding market

8/6/2019 vijay chnd

5/17

PLANT LAYOUT

MEANING:Plant layout refers to the arrangement of

physical facilities such as machines, equipment, tools,furniture etc. in such a manner so as to have quickest flow ofmaterial at the lowest cost and with the least amount ofhandling in processing the product from the receipt of raw

material to the delivery of the final product.

A plant layout can be defined as follows:Plant layout refers to the arrangement of physical facilitiessuch as machinery, equipment, furniture etc. with in thefactory building in such a manner so as to have quickest flow

8/6/2019 vijay chnd

6/17

of material at the lowest cost and with the least amount ofhandling in processing the product from the receipt ofmaterial to the shipment of the finished product.

According toRiggs, the overall objective of plant layout is todesign a physical arrangement that most economically meetsthe required output quantity and quality.

According to J. L. Zundi, Plant layout ideally involvesallocation of space and arrangement of equipment in such amanner that overall operating costs are minimized.

OBJECTIVES OF GOOD PLANTLAYOUT:

y A well designed plant layout is one that can be beneficialin achieving the

y following objectives:y Proper and efficient utilization of available floor spacey Transportation of work from one point to another point

without any delayy Proper utilization of production capacity.y Reduce material handling costsy Utilize labour efficientlyy Reduce accidentsy Provide for volume and product flexibilityy Provide ease of supervision and controly Provide for employee safety and healthy Allow easy maintenance of machines and plant

8/6/2019 vijay chnd

7/17

y Improve productivityTYPESOFLAYOUT:

There are mainly four types of plant layout:

(a) Product or line layout

(b) Process or functional layout

(c) Fixed position or location layout

(d)Combined or group layout

PRODUCT ORLINELAYOUT:In this type of layout the machines and equipments arearranged in one line depending upon the sequence ofoperations required for the product. It is also called as linelayout. The material moves to another machine sequentiallywithout any backtracking or deviation i.e the output of one

machine becomes input of the next machine. It requires avery little material handling.It is used for mass production of standardized products.

ADVANTAGES OFPRODUCT LAYOUT: Low cost of material handling, due to straight and

short route and absence of backtracking Smooth and continuous operations Continuous flow of work

8/6/2019 vijay chnd

8/17

Lesser inventory and work in progress Optimum use of floor space Simple and effective inspection of work and

simplified production control

Lower manufacturing cost per unit

DISADVANTAGES OFPRODUCT LAYOUT: Higher initial capital investment in special purpose

machine (SPM) High overhead charges Breakdown of one machine will disturb the

production process.

Lesser flexibility of physical resources.

PROCESSLAYOUT:

In this type of layout the machines of a similar type are

arranged together at one place. This type oflayout is usedfor batch production. It is preferred when the product is notstandardized and the quantity produced is very small.

ADVANTAGES OFPROCESS LAYOUT: Lower initial capital investment is required.

8/6/2019 vijay chnd

9/17

There is high degree of machine utilization, as amachine is not blocked for a single product

The overhead costs are relatively low Breakdown of one machine does not disturb the

production process. Supervision can be more effective and specialized. Greater flexibility of resources.

DISADVANTAGES OFPROCESS LAYOUT: Material handling costs are high due to

backtracking More skilled labour is required resulting in higher

cost. Work in progress inventory is high needing greater

storage space More frequent inspection is needed which results

in costly supervision

COMBINEDLAYOUT:

A combination of process & product layout is knownas combined layout.

Manufacturing concerns where several products areproduced in repeated numbers with no likelihood ofcontinuous production, combined layout is followed

FIXEDPOSITIONORLOCATIONLAYOUT:

Fixed position layout involves the movementof manpower and machines to the product which remains

8/6/2019 vijay chnd

10/17

stationary. The movement of men and machines is advisableas the cost of moving them would be lesser. This type of layoutis preferred where the size of the job is bulky and heavy.Example of such type of layout is locomotives, ships,

boilers, generators, wagon building, aircraft manufacturing,etc.

ADVANTAGES OFFIXED POSITION LAYOUT:

The investment on layout is very small. The layout is flexible as change in job design and

operation sequence can be easily incorporated. Adjustments can be made to meet shortage of

materials or absence of workers by changing the sequenceof operations.

DISADVANTAGES OFFIXED POSITION LAYOUT:

As the production period being very long sothe capital investment is very high.

Very large space is required for storage of materialand equipment near the product.

8/6/2019 vijay chnd

11/17

As several operations are often carried outsimultaneously so there is possibility of confusion andconflicts among different workgroups.

SUMMARY

In this project you have observed that the entrepreneur has tomake decisions regarding plant location, which refers to theselection of a particular site for setting up a business orfactory. But before making such a choice, he has to go throughthe detailed locational analysis considering various factors,which influence his decision. It is a long-term strategicdecision, which cannot be changed once taken. An optimumlocation can reduce the cost of production and distribution toa great extent. Thus great care and appropriate planning is

8/6/2019 vijay chnd

12/17

required to select the most appropriate location. The efficiencyof production depends on how well the various machines;production facilities and amenities are located in a plant. Anideal plant layout should provide the optimum relationship

among the output, floor area and manufacturing process. Anefficient plant layout is one that aims at achieving variousobjectives like efficient utilization of available floor space,minimizes cost, allows flexibility of operation, provides foremployees convenience, improves productivity etc. Theentrepreneurs must possess the expertise to lay down a properlayout for new or existing plants. It differs from one plant toanother. But basic principles to be followed are more or less

same. From the point of view of plant layout, we can classifysmall business into three categories i.e. (a) manufacturingunits (b) traders (c) service establishments. Designing oflayout is different in all above three categories e.g.manufacturing unit may follow one of Product, Process, andfixed position or combined layout, as the case may be.Traders might go either for selfservice or full service or speciallayouts whereas service establishments such as motels, hotels,

and restaurants must give due attention to customerconvenience, quality of service, efficiency in delivering theservice etc. While deciding for layout for factory or unit orstore, a small entrepreneur has to consider the factors like thenature of the product, production process, size of factorybuilding, human needs etc. Plant layout is applicable to alltypes of industries or plants. At the end, the layout should beconducive to health and safety of employees. It should ensure

free and efficient flow of men and materials. Futureexpansion and diversification may also be considered whileplanning factory layout.

8/6/2019 vijay chnd

13/17

8/6/2019 vijay chnd

14/17

PRINICIPLES OF GOOD PLANT LAYOUT:

.Maximum flexibility- The plant layout should not be rigidand permanent.If the need arises, the plant layout should beable to change itself withoutbeing expensive.

. Maximum coordination - The layout of the plant shouldsuch that all of itsresources and workforce can be observedand evaluated at all points in time.This helps in better supervision of work and helps in

increasing both effectiveness and safety. .Maximum visibility- The layout should visible to all the

workers in the organization(ForExample: Visibility meanshow will it spread to everyone inorganization. ForEg: "CEOactions are visible to all", means everyone inorganizationwill know aboutCEO actions.)

MinimumMovement - The less the movement of men,machines andmaterials, the less will be the cost ofproduction. Thus, minimum movementof theses resourceswill provide cost efficiency.

.Minimum Discomfort- The layout should reduce theuncomfortable for the

workers in the organization

8/6/2019 vijay chnd

15/17

.Minimum Handling - The ineffective handling of materialsleads to a rise incost. Materials should be handled in stacksand transferred in one go.Handling of a material twice inthe same direction must be avoided.

.Safety Aspects - The environment of the plant should besafe for theworkers as well as the machines. There should befire extinguishers and fireexits placed strategically. Thereshould be minimum contact of the labour to toxic chemicalsand environment.

.Efficient Process Flow-A good layout is one that makes thematerials tomove in forward direction towards thecompletion stage i.e. there should notbe any backtracking.

FACTORS INFLUENCING LAYOUT

1.Plant Location:

plant layout and location are interrelated with one anotherThe nature and size of the building determines the floorspace available for layout. Whiledesigning the special

requirements, e.g. air conditioning, dust control, humiditycontrol etc. must be kept in mind.

2. Nature of Product:product layout is suitable for uniform products whereasprocess layout is more appropriate for custom-made products.Depending upon the sequence of operation and the nature of

the product plant layout is decided.

3. Type of Industry:

Product layout is suitable for continous production

8/6/2019 vijay chnd

16/17

Process layout is suitable for intermittent productionSynthetic industry, analytical industry, conditioningindustry and extraction industry

4. PlantEnvironment:

Heat, light, noise, ventilation and other aspects should be dulyconsidered, e.g. STEEL shops and plating section should belocated in another hall so that dangerous fumes can beremoved through proper ventilation etc Adequate safetyarrangement should also be made.

5. SpacialRequirement:

The space of a layout is used for the labourers to work formachines to perform operations for storage of raw materialand finished the space is allocated in a current layout

6. Repairs andMaintainence:

machines should be so arranged that adequate space isavailable between them for movement of equipment andpeople required for repairing the machines.

7. Balance:

The plant layout has to ensure balance between the number ofprocesses and number of machines the capacity of eachmachine is considered to avoid overloading andmaintainence.

8. Management Policies:

8/6/2019 vijay chnd

17/17

The management has to considered the following points byformulating policy withregard to plant layout.

Size of the products Delivery schedule Employee facility No. of equipment and facility Productivity