IEng 5241-Industrial Management & Engineering

Economy

Melkamu Ambelu
Industrial System Design & Operational Management Chair
School of Mechanical and Industrial Engineering
Dire Dawa Institute of Technology
Dire Dawa University
 Out line of presentation
Chapter-II
Plant Design
Basics of Plant Layout; Study of Plant Layout; Ergonomics and
Industrial Safety
Layout?

“Plant layout ideally involves allocation of

space and arrangement of equipment in such
a manner that overall operating costs are
minimized”..
Plant layout

Plant layout refers to the arrangement of physical facilities such

as machinery, equipment, furniture etc. with in the factory
building in such a manner so as to have quickest flow of material
at the lowest cost and with the least amount of handling in
processing the product from the receipt of material to the
shipment of the finished product.
Plant layout - Definitions:

According to Riggs,
"the overall objective of plant layout is to design a physical arrangement that
most economically meets the required output - quantity and quality."
According to J.L.Zundi,
"Plant layout ideally involves allocation of space and arrangement of equipment
in such a manner that overall operating costs are minimized.
Objectives of Layout
1.Efficient utilization of available floor space

2.To ensure that work proceeds from one point to another point without any delay
3.Provide enough production capacity.
4.Reduce material handling costs

5.Reduce hazards to personnel

6.Utilize labor efficiently
7.Increase employee moral.
Objectives of Layout
8.Reduce accidents

9.Provide for volume and product flexibility

10.Provide ease of supervision and control
11.Provide for employee safety and health
12.Allow ease of maintenance

13.Allow high machine or equipment utilization

14.Improve productivity
Importance of Plant Layout
 It is long-term commitment
 It facilitates the production process, minimizes material handling, time and cost, and

allows flexibility of operations

 It facilitates easy production flow, makes economic use of the building, promotes effective
utilization of manpower,and provides for employees convenience,safety,comfort at work,
maximum exposure to natural light and ventilation.
 it affects the flow of material and processes,labour efficiency,supervision and control, use
of space and expansion possibilities .
Determinants of Plant Layout

1.TYPE OF PRODUCT (size,shape and quality)

2.TYPE OF PROCESS (technology employed,sequencing etc)

3.VOLUME OF PRODUCTIONS- (INCREASE OR DECREASE)
Determinants of Plant Layout

1.TYPE OF PRODUCT (size,shape and quality)

2.TYPE OF PROCESS (technology employed,sequencing etc)

3.VOLUME OF PRODUCTIONS- (INCREASE OR DECREASE)
Features of a good layout
There should be sufficient space for the workers as well as for the

equipments to perform their functions .

Must provide adequate safety to workers against injury or accidents e.g. fire
fighting equipments ,first aid boxes.
Supervision , coordination and control of the activity should be effectively
and easily executed.
Their should be sufficient scope for making adjustments and modifications.)
Symptoms of Bad layout

1. Long material flow lines and backtracking (rehandling)

2. Poor utilization of space
3. Congestion for movement of materials and men
4. Large amount of work-in-process
5. Long production cycles
6. Excessive handling materials
7. More frequent accidents
8. Difficult to supervise an control
Plant layout Procedure
1. Collect the detailed information about the product, process etc., and
record the data
2. Analysis the data using various techniques of analysis
3. Select the general flow pattern for the materials
4. Design the individual work station
5. Assemble the individual layout into total layout .
6. Coordinates the plan with plan for handling materials
7. Complete the plant layout
8. Convert the plant layout into floor plans
Principle of plant layout
•PRINCIPLE OF MINIMUM MOVEMENT
•PRINCIPLE OF FLOW
•PRINCIPLE OF SPACE
•PRINCIPLE OF SAFETY
•PRINCIPLE OF FLEXIBILITY
•PRINCIPLE OF INTERDEPENDENCE
•PRINCIPLE OF MINIMUM INVESTMENT
Types of plant layout

PLANT LAYOUT

Product Process Fixed position Combined

Or or or or
Line layout Functional layout Location layout Group layout
Product or Line layout
 Under this, machines and equipments are arranged in one line depending
upon the sequence of operations required for the product.
The materials move from one workstation to another sequentially without

any backtracking or deviation.

Under this, machines are grouped in one sequence. Therefore materials are
fed into the first machine and finished goods travel automatically from
machine to machine,the output of one machine becoming input of the next.
Product or Line layout
 Example:Paper mill
Bamboos are fed into the
machine at one end and paper
comes out at the other end.
The raw material moves very
fast from one workstation to
other stations with a minimum
work in progress storage and
material handling.
Product or Line layout
Advantages of Product or Line layout
1. Low cost of material handling, due to straight and short route and absence of
backtracking.
2.Smooth and uninterrupted operations
3.Continuous flow of work
4.Lesser investment in inventory and work in progress
5.Optimum use of floor space
6.Shorter processing time or quicker output
7.Less congestion of work in the process
8.Simple and effective inspection of work and simplified production control
9.Lower cost of manufacturing per unit
Dis-advantages of Product or Line layout

1.High initial capital investment in special purpose machine

2.Breakdown of one machine will hamper the whole production process

3.Lesser flexibility as specially laid out for particular product.
Characteristics of Product Layouts
Special-purpose equipment are used

Changeover is expensive and lengthy

Material flow approaches continuous

Material handling equipment is fixed

Little direct supervision is required

Planning,scheduling and controlling functions are relatively straight-forward

Production time for a unit is relatively short

In-process inventory is relatively low

Suitability of Product or Line layout
1.Mass production of standardized products
2.Simple and repetitive manufacturing process
3.Operation time for different process is more or less equal
4.Reasonably stable demand for the product
5.Continuous supply of materials
Therefore, the manufacturing units involving continuous manufacturing
process, producing few standardized products continuously on the firm's own
specifications and in anticipation of sales would prefer product layout e.g.
chemicals, sugar, paper, rubber, refineries, cement, automobiles, food
processing
Process or Functional Layout
In this type of layout machines of a similar type are arranged together at one place. E.g.
Machines performing drilling operations are arranged in the drilling department,
machines performing casting operations be grouped in the casting department.
Therefore the machines are installed in the plants,which follow the process layout.
The work, which has to be done, is allocated to the machines according to loading
schedules with the object of ensuring that each machine is fully loaded.
Used when the operations system must handle a wide variety of products in relatively
small volumes (i.e.,flexibility is necessary)
Process or Functional Layout
In a process layout, (also referred to as a job shop layout) similar machines and
services are located together . Therefore, in a process type of layout all drills are
located in one area of the layout and all milling machines are located in another
area.
A manufacturing example of a process layout is a machine shop. Process layouts are
also quite common in non-manufacturing environments.
Examples
Hospitals, colleges, banks, auto repair shops, and public libraries.
Process or Functional Layout
Process or Functional Layout
Process or Functional Layout
P r o c e s s la y o u t f o r a n h o s p it a l
Characteristics of Process Layouts
General-purpose equipment is used

Changeover is rapid

Material handling equipment is flexible

Operators are highly skilled

Technical supervision is required

Planning,scheduling and controlling functions are challenging

Production time is relatively long

In-process inventory is relatively high

Advantages of Process layout
1.Lower initial capital investment in machines and equipments. There is high degree of
machine utilization,as a machine is not blocked for a single product

2.The overhead costs are relatively low

3.Change in output design and volume can be more easily adapted to the output of variety
of products

4.Breakdown of one machine does not result in complete work stoppage

5.Supervision can be more effective and specialized There is a greater flexibility of scope
for expansion
Dis-advantages of Process layout
1.Material handling costs are high due to backtracking
2.More skilled labour is required resulting in higher cost.

3.Time gap or lag in production is higher

4.Work in progress inventory is high needing greater storage space

5.More frequent inspection is needed which results in costly supervision
Suitability of Process layout
Products are not standardized
Quantity produced is small
There are frequent changes in design and style of product
Job shop type of work is done
Machines are very expensive
Thus, process layout or functional layout is suitable for job order production involving non-
repetitive processes and customer specifications and non-standardized products, e.g. tailoring,
light and heavy engineering products,made to order furniture industries,jewelry.
Comparison between process and product layout

Characteristic Productlayout Processlayout

Nature A sequence of facilities as per All similar facilities are grouped together
Processing requirement of
products
Application Standardized, stable rate output Variety of products using common
operations

Productioncentre Simple Complex

Flexibility Low High
Spaceutilization Efficient Low
Productcost Highfixedcost,lowvariablecost Lowfixedcost,Highvariablecost
Fixed position or Location layout

In this type of layout, the major product being produced is fixed at one
location. Equipment labour and components are moved to that location. All
facilities are brought and arranged around one work center.This type of layout
is not relevant for small scale entrepreneur.

E.g.- shipbuilding
Fixed position or Location layout
In this type of layout, the product is
kept at a fixed position and all other
material; components, tools, machines,
workers, etc. Are brought and arranged
around it. Then assembly or fabrication
is carried out. The layout of the fixed
material location department involves the
sequencing and placement of workstations
around the material or product. It is used
in aircraft assembly , shipbuilding, and
most construction projects. A pictorial
representation of a fixed location type
of layout is given in Figure .
Fixed position or Location layout
Advantages of Fixed position layout
It saves time and cost involved on the movement of work from one workstation to
another.
The layout is flexible as change in job design and operation sequence can be easily
incorporated.
It is more economical when several orders in different stages of progress are being
executed simultaneously.
Adjustments can be made to meet shortage of materials or absence of workers by
changing the sequence of operations.
Dis-advantages of Fixed position layout
Production period being very long,capital investment is very heavy
Very large space is required for storage of material and equipment near the product.
As several operations are often carried out simultaneously, there is possibility of
confusion and conflicts among different workgroups.
Suitability of Fixed position layout

Manufacture of bulky and heavy products such as locomotives, ships, boilers,

generators,wagon building,aircraft manufacturing,etc.
Construction of building,flyovers,dams.
Combined or Group 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
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, Generally, a combination of the product and process layout or other
combination are found in practice.
Combined or Group layout

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.
Plant Utilities
Plant utilities refer to such services as lighting, ventilation, air-conditioning etc. All
these deserve due consideration from operations management as they contribute to
increased efficiency and greater output.
The types of plant facilities and services are as follow:
1.Plant Lighting 2.Ventilation
3.Air-conditioning 4.Industrial Sanitation

5.Noise control 6.Industrial safety

Tools and Techniques of Plant layout
 The quality and quantity of the data on various factors is required to develop a good
layout.
 The data is to be collected regarding the various processes, sequence of operations ,
materials, flow frequency of travel, space requirements, activities and their relationship .
The following tools and techniques are used to analyses the data;
1. Process charts ( Operation process charts,flow process charts)
2. Travel chart
3. Diagrams ( Flow diagram and string diagrams)
4. REL ( Relationship chart)
5. Scaled models
ERGONOMICS-WHAT DOES IT MEAN…..?
Derived from two Greek words:
“Ergon”----------- meaning work

“Nomoi”-------- meaning natural laws

• Hence,ergonomists study human capabilities in relationship to work demand.

• Ergonomics is the science and the art of fitting the job and the workplace to workers’
needs.
 It is the study of work
 It is a way to make jobs/tasks fit the employees better
 It is a way to make work easier
What is Ergonomics?
Common Definitions
“Ergonomics is essentially fitting the workplace to the worker. The better the

fit the higher the level of safety and worker efficiency.” Fitting the Task to the
Human ~ Grandjean 1990
“Ergonomics removes barriers to quality, productivity and human
performance by fitting products, tasks, and environments to people.”
ErgoWeb.com
ERGONOMICS DEFINED
Ergonomics is the science of fitting the

job to the worker.

The science of measuring the amount of

force put on the muscles and joints of

people when working in different
positions
OBJECTIVES
The objective is to improve the efficiency of operation by taking into account a

typical person's size, strength, speed, visual acuity, and physiological stresses, such
as fatigue,speed of decision making,and demands on memory and perception.

 To maximize productivity while lowering the risk of Musculoskeletal Disorders

(MSDs). MSDs develop as a result of long term exposure to a combination of

ergonomic risk factors such as repetition, high forces and awkward postures.
Examples of MSDs include carpal tunnel syndrome,tendonitis and back disorders.
ERGONOMIC RISK FACTORS

Risk of injury increases with:

Prolonged exposure to any of

these ergonomic risk factors

Presence of multiple risk factors

within a single job task

TYPES OF ERGONOMICS
Physical ergonomics is the human body’s responses to physical and physiological work

loads. Repetitive strain injuries from repetition, vibration, force, and posture fall into this
category.

Cognitive ergonomics deals with the mental processes and capacities of humans when at

work. Mental strain from workload, decision making, human error, and training fall into
this category.

Organizational ergonomics deals with the organizational structures,policies and processes

in the work environment, such as shift work, scheduling, job satisfaction, motivation,
supervision,teamwork,telecommuting,and ethics.
ERGONOMICS focus
Ergonomic related injuries
May be called:

• CTD’s (cumulative trauma disorders)

• RSI’s (repetitive stress injuries)
• RMI’s (repetitive motion injuries)
Which are all considered:

• MSD’s (musculoskeletal disorders)

MSD’s can affect muscles,tendons,nerves,joints and spinal disks

Risk factors and causes of MSD’s
 Repetition

 Force

 Awkward Posture

 Static Posture

 Contact Stress

 Temperature Extremes

 Vibration

 Psycho Social
Risk factors - MSD’s --
Repetition
 Occurs when the same or similar movements are performed frequently.
 Repetition can also occur when different tasks are performed if those tasks have the same
movements.
 Injury may result from repetition when the tissues do not have adequate time to recover.
Force
 Force is the amount of physical effort required by a person to do a task or maintain control of tools
or equipment.
 A pinch grip produces 3-5 times more force on the tendons in the wrist than a grip with the whole
hand.
 With excessive force the muscles are contracting much harder than normal, this can lead to stress
on the muscles,tendons and joints.
Risk factors - MSD’s --
Awkward Posture
 Is a deviation from the“neutral”body position.
 A “neutral”body position is safest and most efficient position
in which to work.
 Awkward posture puts stress on muscles,tendons and joints
Static Posture
 Static posture occurs when one position is held for a prolonged
period of time.
 The muscles will become fatigued from a lack of blood flow
during a static posture.
 This fatigue can lead to discomfort and even injury.
Risk factors - MSD’s --
Contact Stress
 Contact stress is caused by any sharp or hard object putting
localized pressure on a part of the body.
 Contact stress will irritate local tissues and interfere with
circulation and nerve function.
Temperature Extremes
 Environmental conditions such as extreme heat or cold can place
stress on tissues.
 Extreme cold constricts blood vessels and reduces sensitivity and
coordination of body parts.
 Excessive heat can result in increased fatigue and heat stress.
Risk factors - MSD’s --
Vibration
 Exposure to vibration can occur while using power tools or
while driving equipment.
 Vibration from power tools can place stress on the tissues of
the fingers,hand and arms.
 Whole body vibration from driving puts stress on the spinal
tissues.
Psycho-social Issues
 Stress, boredom, job dissatisfaction and anxiety can contribute to
the possibility of developing a MSD.
 Psycho-social issues can create increased muscle tension and
reduce a person’s awareness of work technique
ERGONOMIC STRESS AREAS
BODY ANGLES
 HEAD

 SHOULDERS

 ELBOWS

 HANDS

 WAIST

 LEGS

 FEET
CORRECT & INCORRECT TECHNIQUES
CORRECT & INCORRECT TECHNIQUES
SITTING POSTURES
MORE ANGLES
ADVANTAGES

A successful ergonomics program utilizes the skills of many disciplines, including

engineering, psychology, medical, safety, management and the employees or

associates

Applications range from the design of work areas (including office furniture,

automobile interiors, and aircraft cockpits) to the disposition of switches and

gauges on the control panels of machinery to determining the size, shape, and
layout of keys on computer terminals and character height, color, and clarity on
video displays.
ADVANTAGES
The benefits of applying ergonomic principles:

- Maximize productivity, efficiency and quality;

- Reduce MSD risk by eliminating or minimizing ergonomic risk factors;

-Improve employee morale;and

-Cost savings associated with injury-related absenteeism, treatment, new hire

training and WCB claims.
 It can help you do work safely
It can make you more comfortable
 It can prevent injuries
What is Industrial safety?
Industrial safety is primarily a management
activity which is concerned with

Reducing

Controlling

Eliminating hazards from the industries or

industrial units.
Significance of Industrial Safety
industrial causes a great loss to both the Employer & Employee,that’s it is having
Importance
 Cost of compensation
 Cost of medical-aid
 Cost of training a new worker
 Cost of the lost time
 Cost of investigation
 Cost of supervision & inspections
 Cost to the Govt.in terms of factory inspectors,& public health services
 Cost of spoilage of materials
 Cost of the damage of machinery
 Cost of cost of wages payable during injury
Objective of Industrial safety
To prevent accidents in the plant by reducing the hazard to minimum.

To eliminate accident caused work stoppage and lost production.

To achieve lower workmen’s compensation, insurance rates and reduce all other direct and

indirect costs of accidents.

To prevent loss of life, permanent disability and the loss of income of worker by eliminating

causes of accidents.

To evaluate employee’s morale by promoting safe work place and good working condition

To educate all members of the organization in continuous state of safety mindless and to

make supervision competent and intensely safety Minded.

Causes of Industrial Accidents
1.Unsafe conditions
a.The job itself
b.Work schedules
c.Psychological conditions
d.Machinery & Equipment
2.UnsafeActs

3.Miscellaneous Causes
Four E’s of safety
Engineering: i.e.safety at the design,equipment installation stage.
Education: i.e.education of employees in safe practices.

Enlistment: i.e.it concerns the attitude of the employees and management

towards the programmed and its purpose.This necessary arose
the interest of employees in accident prevention and safety
consciousness.

Encouragement:i.e.to enforce adherence to safe rules and practices.

Safety Inspection Procedures
Safety audit

A safety audit subjects each area of a company’s activity to a systematic critical

examination with the object of minimizing loss.

Safety survey

A safety survey is a detailed examination in depth of a narrower field of activity.

Safety inspection

 A routine scheduled inspection of a unit or department, which may be carried out by

someone ( may be a safety representative ) from within the unit, possibly accompanied by
the safety advisor.The inspection would check maintenance standards.
Safety instruments