Facility Location & Layout

Facility Location Facility Layout
PRESENTED BY
DNYANESHWAR SURYAWANSHI
Guided by-Prof. PRATIMA MISHRA

INTRODUCTION TO FACILITY LOCATION
Facility location is also known as location analysis, It is a branch of

operation reasech concering itself with mathematical modeling and
solution of problems concerning the place of facilities in Oder to
minimize transportation cost, avoid placing hazardous materials near
housing,
Need of Facility Location
 To start new Business
 New branch
 Reducing cost
Errors in Facility Location
 Lack of investigation
 Rigid executive
 Unsuitable Area
Steps in location selection
Deciding on domestic or international location
Selection of region
Selection of community
Selection of the exact site

1. Within The Country or Outside The Country
 Whether in our country or other

 If other country , then which country
2. Selection of Region
 Availability of raw materials
 Nearness to the market
 Availability of power
 Transport facilities
 Suitability of climate
 Government policy
 Competition between states
3. Selection of community
 Availability of labor
Civic amenities for workers
Existence of complementary and competing industries
Availability of water and fire-fighting facilities
 Local taxes and restrictions
Momentum of an early start
Personal factors
4 . Selection of the site
Soil, size and topography
Disposal of waste
LOCATION MODELS
Various models are available which help identify a near ideal

location. The most popular models are:
 Factor rating methods.
 Point rating method.
 Break-even analysis.
 Qualitative factor analysis.

Factor Rating Method
The method has following advantages:
 Simplicity which facilitates communication about why one

location/site is better than another.
 Enables bringing diverse locational consideration into the

evaluation process.
 Foster consistency of judgment about location

alternatives.
Point Rating Method
 The relative weight a company assigns to each objective or

to each location factor may be represented by the number of
point a perfect site would receive in each category.
 Each potential site is then evaluated with respect to every

factor a company is looking for and points are assigned for
each factor.
 The site with the highest total number of point is considered

superior to other site.
Locational break-even Analysis
 In comparing several potential locations on an

economic basis the only revenues and costs that need
to be considered are the ones that vary from one
location to another.
 If the revenue per unit is the same regardless of

where the good is produced, the total revenues can
be eliminated from consideration.
Qualitative Factor Analysis Method
 If economic criteria are not sufficiently influential

to decide the location alternative, a system of
weighting the criteria might be useful in making a
plant location decision.
 This approach is referred to as qualitative factor

analysis.
FACILITY LAYOUT
Definition
“ Planning and arranging manufacturing machinery, equipment, and

services for the first time in completely new plants;
The improvements in layout already in use in order to introduce new
methods and improvement in manufacturing procedures.”
■ Objectives of good layout

PRINCIPLES OF LAYOUT
 The principle of minimum travel
 The principle of usage
 The principle of safety and satisfaction
 The principle of flexibility
 The principle of minimum investment

FACTORS INFLUENCING FACILITY LAYOUT
 Material
 Product
 Worker
 Machinery
 Location
Types of Layout
Process Layout
Process Layout :- Involves grouping together

of like machines in one department
Pros and Cons
Advantages:
 Better and more efficient supervision is possible through
specialization
 This type of layout results in better utilization of man
,machine
 Their is full utilization of equipment
 It is easier to handle break down of equipment
Disadvantages:
 Their is difficulty in movement of material
 It requires more floor space
 Their is difficulty in production control
 Production time is more
Product Layout
It involves the arrangement of machines in one

line dispending upon the sequence of
operations
Pros & Cons
ADVANTAGE
 Their is economy in manufacturing time

 This type of layout facilitates better production control
 This type of layout requires less floor area
 Work in progress is reduced
DISADVANTAGES
 It is known for its inflexibility

 This types of layout is also expensive
 Their is difficulty in super vision
 Expansion is also difficult
Fixed position Layout
This type is followed in manufacture of bulky n heavy

product
Advantages
The high cost of and difficulty in transporting bulky
product are avoided
The investment on lay out is very small
Cellular Manufacturing Layout
Machines are grouped into cells and cells function

somewhat like a product layout within a larger
shop or process layout
Advantages:
Simplified production planning
Increased operator responsibility
Quality also tends to improve
COMBINED LAYOUT
 In most industrial units plants are never laid

out in either pure form
 Combined form of all layouts is used

Importance of Facility Layout
 Economies in handling
 Effective use of available area
 Minimization of production delay
 Improved quality control
 Avoidance of bottle neck
 Better production control
 Improved employee moral
 Avoidance of unnecessary and costly changes
Criteria For Selection And Design of Layout
 Material handling cost
 Workers effectiveness
Methods Used For Selection
 Travel chart method
 Load-Distance analysis method
 Systematic layout planning

THANK YOU

Facility Location & Layout

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Facility Location & Layout

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Facility Location Facility Layout

Guided by-Prof. PRATIMA MISHRA

Facility location is also known as location analysis, It is a branch of

 To start new Business

Deciding on domestic or international location

Selection of the exact site

 Whether in our country or other

Soil, size and topography

Various models are available which help identify a near ideal

 Factor rating methods.

 Point rating method.

 Qualitative factor analysis.

The method has following advantages:

 Simplicity which facilitates communication about why one

 Enables bringing diverse locational consideration into the

 Foster consistency of judgment about location

 The relative weight a company assigns to each objective or

 Each potential site is then evaluated with respect to every

 The site with the highest total number of point is considered

 In comparing several potential locations on an

 If the revenue per unit is the same regardless of

 If economic criteria are not sufficiently influential

 This approach is referred to as qualitative factor

“ Planning and arranging manufacturing machinery, equipment, and

■ Objectives of good layout

 The principle of minimum travel

 The principle of usage

 The principle of safety and satisfaction

 The principle of flexibility

 The principle of minimum investment

Process Layout :- Involves grouping together

It involves the arrangement of machines in one

 Their is economy in manufacturing time

 It is known for its inflexibility

This type is followed in manufacture of bulky n heavy

Machines are grouped into cells and cells function

 In most industrial units plants are never laid

 Combined form of all layouts is used

 Material handling cost

 Travel chart method

 Load-Distance analysis method

 Systematic layout planning

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