Plant Layout - Plant Location And Layout

Plant Layout in Operation Management

Plant layout refers to the physical arrangement of production facilities. It is the configuration of departments, work centers and equipment in the conversion process. It is a floor plan of the physical facilities, which are used in production.

According to Moore “Plant layout is a plan of an optimum arrangement of facilities including personnel, operating equipment, storage space, material handling equipment and all other supporting services along with the design of best structure to contain all these facilities”.

Plant Location and Plant Layout in Production Management

The Plant location and Plant layout in production management are

Objectives of Plant Layout
The primary goal of the plant layout is to maximize the profit by arrangement of all the plant facilities to the best advantage of total manufacturing of the product. The objectives of plant layout are:

  1. Streamline the flow of materials through the plant.
  2. Facilitate the manufacturing process.
  3. Maintain high turnover of in-process inventory.
  4. Minimize materials handling and cost.
  5. Effective utilization of men, equipment and space.
  6. Make effective utilization of cubic space.
  7. Flexibility of manufacturing operations and arrangements.
  8. Provide for employee convenience, safety and comfort.
  9. Minimize investment in equipment.
  10. Minimize overall production time.
  11. Maintain flexibility of arrangement and operation.
  12. Facilitate the organizational structure.

Principles of Plant Layout

  1. Principle of integration: A good layout is one that integrates men, materials, machines and supporting services and others in order to get the optimum utilization of resources and maximum effectiveness.
  2. Principle of minimum distance: This principle is concerned with the minimum travel (or movement) of man and materials. The facilities should be arranged such that, the total distance travelled by the men and materials should be minimum and as far as possible straight line movement should be preferred.
  3. Principle of cubic space utilization: The good layout is one that utilizes both horizontal and vertical space. It is not only enough if only the floor space is utilized optimally but the third dimension, i.e., the height is also to be utilized effectively.
  4. Principle of flow: A good layout is one that makes the materials to move in forward direction towards the completion stage, i.e., there should not be any backtracking.
  5. Principle of maximum flexibility: The good layout is one that can be altered without much cost and time, i.e., future requirements should be taken into account while designing the present layout.
  6. Principle of safety, security and satisfaction: A good layout is one that gives due consideration to workers safety and satisfaction and safeguards the plant and machinery against fire, theft, etc.
  7. Principle of minimum handling: A good layout is one that reduces the material handling to the minimum


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Production and Operations Management Topics