Prepared By,Mr. Nishant Agrawal

Facility Capacity &

Layout Planning

Session outline Need for Capacity Planning

Type of Capacity

Roles of forecasting in Capacity Planning

Facility Layout Planning

Product Layout

Process Layout

Fixed position layout

Cellular layout

Capacity and Capacity Planning

Capacity of facility is defined as Maximum load that can be

handled by it during given period.

The load can expressed in terms of amount of inputs or output.

Ex. Capacity of Sugar mill can expressed in terms of the tones of

sugar cane (inputs) crushed per day or in terms of tones of sugar

(output) produced per day

Need for Facility Capacity Planning

Low capacity of facility may result in costs of under capacity,

especially during periods of high demand of the product. Loss of

potential profit.

Over Capacity of plant means less number of units of product

are produced due to lower demand as compared to capacity

available.

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1. To keep initial investment in the facility as low as possible to

achieve break even volume

2. Investments in facility capacity are long term and can not be

reversed easily.

3. To satisfy the future demand of products without any shortage.

4. Optimal Capacity(Minimum) = Under Capacity + Over Capacity

Types of Capacity

Capacity

Design Capacity

Effective Capacity

Actual Capacity

Design Capacity

This is capacity design for the facility. It depends upon the number

and capacity of machines and equipments.

Effective Capacity

If facility used to make different products, a set up time will be

required between batches of different products to be produced.

Always lower than design capacity.

Actual Capacity

Maximum rate of output rate which is actually achieved under the

constraints of machine breakdown.

Actual capacity can be equal to or less than effective capacity.

Way of increasing effective capacity

Proper process quality control so that there are lesser defective

items requiring rework.

Good Training, High Motivation, Less Absenteeism

Good coordination with suppliers for timely and defective

suppliers and proper scheduling of products on machines.

Properly following the environmental and pollution norms,

which result in inspected by government agencies and less

disruption of production activities.

Proper Facility Location, layout and internal working condition.

Roles of Forecasting in Capacity Planning

Four types of General trends are possible.

1. Growth

2. Decline

3. Cyclical

4. Stable

Facility Layout Planning

Layout

Product

ProcessFixed

Cellular

Product Layout / An assembly lineIt is suitable when product having standard features is to be

produced in large volumes.

The production process involves repetitive tasks to be performed

on items arrange in sequence

The specialized machines and equipment are arranged once after

other. This production line is often called assembly line.

The assembly line has mechanized moving platform , which moves

at regular interval of time.

The basic structure of the products to be manufactured in the raw

form are placed on conveyor at equal distance from each other.

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Across conveyor, there are workstation which have required

machines, equipments, components , tools to perform assembling of

tasks on the basic product.

The total performance time of tasks assigned to each workstation

should be almost equal.

This is necessary because conveyor moves after definite period of

time.

Advantages Disadvantages

Easier material handling and less

inventory costs.

Less supervision and labour

training costs

High output rate and low cost of

item per unit

High Efficiency of labour and

equipment

No need of scheduling once the

line is operational

Maintenance cost is fairly high

to ensure smooth running of

line

Inflexible to design changes in

products or processes

(expensive)

Breakdown of a machine lead

to halt in production

Repetitive tasks lead to

frustration for workers

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U shaped assembly line

It is useful particularly when there is a single worker in the line

taking care of all workstation.

It reduce the walking distance of worker almost by half.

The closeness of workstations allows workers to helps a fellow

worker catch up. Increase team work among workers.

Reduce material handling as entry and exit point of material on

line are nearby.

At the same time , many workstation close to each other may

result in conversation, noise etc. resulting distraction from work.

U shaped assembly line

Assembly line balancing

The assembly line can be efficient only when tasks are assigned to

different workstations in such a way that as far as possible, total

processing times at these workstation are equal.

This is so because conveyor moves at regular intervals of time and

therefore time available for each workstation to complete list of set of

assigned tasks is the same. This is achieve by assembly line balancing

Process Layout

In this machines are arranged in no particular sequence as processing

requirements and sequence are different for various type of products

to be manufactured.

It is suitable when different produces are produced in lots or

batches. This is called intermittent manufacturing.

The demand of items is not high enough to warrant continuous

manufacturing.

Process Layout is very commonly found in service set ups such as

banks, hospitals, post offices, universities etc.

Process Layout

Continue…Advantages Disadvantages

Maintenance cost is low because of low

cost general purpose machines.

The system is more flexible to design

changes in products as compare to

product layout.

Breakdown of machine does not lead to

halt in production as substitute machines

are kept ready for such situations

The system promote creativity of

workers due to the variety of tasks

performed by them.

Material handling is time consuming as

there is no fixed route.

Work in process inventory is usually

high in batch processing

A low output rate and thus high cost

per unit.

Routing and scheduling is tedious and

time consuming for different products

High cost of supervision because of

special treatment to every product

being processed.

Fixed Position Layout

The product is very bulky , heavy , large or has fixed

position. Ex. Construction of building, dam or plant

Equipment , raw materials, and workers team are brought

to side according to a time schedule for better utilization of

the space available.

Cellular layout and Group Technology

Product layout is desirable by most organization , but low volume.

Intermittent layout called cellular layout. Cellular manufacturing, a model for

workplace design, is an integral part of just-in-time manufacturing and lean manufacturing, 

In this groups of items with similar processing requirements are identified and separate manufacturing cells forms for each group.

AssignmentsQue.1 ) Explain Product layout and Process layout in detail

ORDiscuss types of Plant Layout with suitable examples.

ORDefine the various types of plant layout in brief with suitable

examples of each.OR

What is Plant layout? List the various types of Plant layout. Carry out a comparative analysis product and process layout with an example.

ORHow many types of Basic Layouts are there for a facility? Briefly

explain each of them.

Thank You…!!!!

“Everything does happen

for Good”