Module 2

.
Plant
layout
and
Material
handling
-
principles
of
material
handling,
Types
of
material
handling
equipments,
Selection
and
application
.
.
Preventive
and
break
-
down
maintenance
-
Replacement
policy
�
.
Methods
of
replacement
analysis
-
Method
of
providing
for
depreciation
-
Determination
of
economic
life
-
Simple
problems
.
Plant ,Plant location

.
A
plant
is
a
place
where
men
machines,
materials
,money,eqipments
are
brought
together
for
manufacturing
products
.
.
Plant
location
means
selection
of
suitable
site,
area
,place
etc,where
the
plant
or
factory
will
start
functioning
.
.
A
good
plant
location
will
reduce
the
cost
of
production
and
facilitate
the
customer
to
get
the
products
as
lesser
price
.
At
the
same
time
the
entrepreneur
will
get
a
good
profit
.
.
It
is
not
an
easy
task
to
select
a
proper
site
because
if
the
selection
is
not
proper
,the
money
spent
on
factory
building,eqipments
and
their
installation
will
become
waste
.
Then
the
entrepreneur
will
suffer
a
great
loss
.
There
fore
it
is
essential
to
analyze
various
factors
which
may
provide
maximum
advantage
while
starting
an
industry
.
Factors governing plant location

.
Nearness to raw materials
.
Nearness to market
.
Transport facility
.
Availability of labors
.
Availability of power and fuel
.
Availability of water
.
Climate and atmospheric conditions
.
Land
.
Waste disposal
.
Availability of capital
.
Community attitude
.
Social and recreational facilities
.
Labor laws and taxation
.
Existence of related industries
Plant layout
Features of a Good Plant Layout
Principles of a Good Plant layout

.
The
principle
of
Minimum
Travel
.
The
Principle
of
Sequence
.
The
Principle
of
Compactness
.
The
Principle
of
Usage
.
The
Principle
of
Safety
&
Satisfaction
.
The
Principle
of
Flexibility
.
The
Principle
of
Minimum
Investment
Product Layout

Process Layout

1.One or few standard products

1.Many types of products or

emphasis on special orders

2.Large volume of production

2.Relatively low volume of

production

3.Minimum inspection required

3.Many inspection required during

an operation

4.Materials and products permit

bulk or continuous handling by
mechanical means

4.Materials
and products too bulky
to permit bulk or continuous
handling by mechanical means

5.Little or no occasion to use the

same machine or work station
for
more than one operation

5.Frequent need for using the

same
machine or work machine for
two or more different operations.

Circumstances
when
Product
and
process
layout
can
be
used
Objectives of Plant layout
.
Economies of handling
.
Effective use of available area
.
Minimization of production delays
.
Improved quality control
.
Minimum equipment investment
.
Avoidance of bottlenecks
.
Better supervision
.
Improved utilization of
labour
.
Improved employee morale

OBJECTIVES OF PLANT LAYOUT

Types of layout
Product Layout
-
Definition

.
This
type
of
layout
is
generally
used
when
a
product
having
standard
features
is
to
be
produced
in
large
volumes
.
The
production
process
thus
involves
in
repetitive
tasks
to
be
performed
on
items
which
are
arranged
in
a
sequence
.
.
The
specialized
machines
and
equipments
are
arranged
one
after
the
other
in
the
order
of
sequence
required
in
production
process
such
that
a
production
line
is
formed
by
them
.
Product /Line layout
Advantages
Disadvantages
Process layout/Job shop layout

.
Process
layout
is
particularly
suitable
when
different
products
are
produced
in
lots
or
batches
.
.
Process
layout
is
very
commonly
found
in
service
set
ups
such
as
banks,
post
offices,universities,libraries,hospitals
etc
.
Process layout
Process layout
Advantages
Disadvantages
Fixed position/Location Layout

.
This
type
of
layout
is
used
when
the
product
is
very
bulky,heavy,large
or
has
a
fixed
position
.
Here
the
product
is
kept
at
a
fixed
position
and
all
other
materials
such
as
component,tools,machines,workers
etc
are
brought
and
arranged
around
it
.
Then
assembly
or
fabrication
is
carried
out
.
.
E
.
g
.
-
In
the
construction
of
a
building,
dam,
Fixed position /Location layout
Fixed position layout
Advantages
Disadvantages
.
Defined
as
the
art
and
science
of
moving,
packing
and
storing
of
substances
in
any
form
.

-
Creation
of
time
and
place
utility

-
Movement
and
storage
of
material
at
the
lowest
possible
cost
through
the
use
of
proper
methods
and
equipments
.

-
Lifting,
shifting
and
placing
of
materials
which
effect
a
saving
in
money,
time
and
place

-
Art and science of
conveying,elevating,positioning,transporting,
packaging and storing of materials.

MATERIAL HANDLING
.
Efficient
material
handling
is
important
to
manufacturing
operations
.
Materials
sent
by
vendors
must
be
uploaded,
moved
through
inspections
and
production
operations
to
stores
and
finally
to
the
shipping
department
.
.
These
movements
do
not
add
value
to
the
product
but
they
do
add
value
to
the
cost
.

IMPORTANCE
OF
MH
.
Material
handling
analysis
is
a
subset
of
plant
layout
.
Method
study,
plant
layout
and
material
handling
are
all
part
of
the
design
of
a
production
facility
.
.
Material
handling
system
and
plant
layout
enhance
effectiveness
of
each
other
.
.
Efficient
operation
of
appropriate
material
handling
methods
reduces
costs
and
enables
maximum
capabilities
to
be
derived
from
a
given
production
facility
.
.
Main
objective
is
to
reduce
the
number
of
handlings
as
well
as
the
overall
cost
of
material
handling
equipment
and
reducing
the
distances
through
which
the
materials
are
handled
.

OBJECTIVES OF MH
.
Lower
unit
material
handling
costs
.
Reduction
in
manufacturing
cycle
time
through
faster
movement
of
materials
and
by
reducing
the
distance
through
which
the
materials
are
moved
.
Reduction
in
manufacturing
cycle
time
results
in
reduced
work
-
in
-
progress
inventory
costs
.
.
Improved
working
conditions
and
greater
safety
in
movement
of
materials
.
.
Contribute
to
better
quality
by
avoiding
damage
to
products
by
inefficient
handling
.
Increased
storage
capacity
through
better
utilization
of
storage
areas
.
.
Higher
productivity
at
lower
manufacturing
cost
.

OBJECTIVES OF MH
Principles of material handling
10
.
The
selection
of
material
handling
equipment
is
based
on
the
economics
of
operation
.

11
.
The
physical
state
of
materials
is
a
factor
in
determining
MHE

12
.
The
shortest
distance
between
two
given
points
is
a
straight
line
(utilize
a
straight
line
flow
of
materials
whenever
possible)

13
.
Material
should
move
continuously
along
any
production
line
.

14
.
All
material
handling
operations
should
follow
a
defined
method
.

15
.
Short,
Irregular
moves
lend
themselves
to
manual
materials
handling

16
.
Whenever
practicable,
materials
should
be
pre
positioned
for
the
handling
operations

17
.
Whenver
practicable,
materials
should
be
moved
in
a
horizontal
plane
or
with
the
aid
of
gravity
.
.
Eliminate
handling

-
if
not,
make
handing
distance
as
short
as
possible

.
Keep
moving

-
If
not,
reduce
the
time
spent
at
terminal
points
of
a
route
as
short
as
possible

.
Use
simple
patterns
of
material
flow

-
The
simplest
path
is
a
straight
line,
if
not,
avoid
back
tracking,
cross
overs

.
Carry
pay
loads
both
ways

-
if
not,minimise
time
spent
on
transport
empty
by
changing
speed
in
return
route

.
Carry
full
loads

-
if
not,
decrease
carrying
capacity
by
lowering
the
speed

.
Use
gravity

-
If
not,
use
a
cheaper
power
source

Material Handling principles

.
Cost
of
owing
and
maintaining
the
equipment
.
Cost
of
operating
the
system

-
this
is
generally
elusive

.
The
product
will
not
be
worth
any
more
to
the
customer
simply
because
it
was
moved
.
Reduction
of
the
cost

-
Eliminating
the
handling
itself
whenever,
wherever
possible

-
Mechanising,largely
by
power
conveyors,
whatever
handling
still
remains

-
making
the
necessary
handling
more
efficient

Material Handling Costs

.
The
structure
varies
with
industry,
type
of
manufacturing
process,
the
product
manufactured,
its
bulk
and
its
value
.
In
small
firms,
it
may
be
one
of
the
functions
assigned
to
the
plant
engineer
,purchasing
manager
or
production
manager
.
Big
firms,
a
separate
dept
.
itself
is
developed
to
study
procedures
and
devise
better
handling
techniques
.
When
thus
organized,
they
form
part
of
industrial
engineering
division
.

ORGANISATION FOR MATERIALS HANDLING

.
Unit
load
is
a
number
of
items,
or
bulk
material,
so
arranged
that
the
mass
can
be
picked
up
and
moved
as
a
single
object,
too
large
for
material
handling
.
Advantages
.
Disadvantages
.
-
Cost
of
unitising
&
de
unitising
.
-
equipment
.
-
bare
weight
of
unitising
medium
.
-
problem
of
returning
empty
pallet
.
-
Transfer
equipment
often
not
available
at
both
ends
of
the
move

UNIT LOAD CONCEPT

.
When
drawn
on
paper,
the
flow
pattern
becomes
a
flow
chart,
which
will
help
locate
needless
criss
crossing
and
back
tracking
of
material
movements
.
.
Once
unwanted
movements
are
known,
steps
can
be
taken
to
eliminate
or
reduce
such
moves
.

FLOW PATTERN
Flow pattern for materials
.
Increased
efficiency
of
production
.
Better
utilisation
of
floor
space
.
Simplified
handling
activities
.
Better
equipment
utilisation,
less
idle
time
.
Reduced
in
-
process
time
.
Reduced
in
�
process
inventory
.
More
efficient
utilisation
of
work
force
.
Reduced
product
damage
.
Reduced
walking
distance
.
Minimal
accident
hazards
.
Basis
for
an
efficient
layout
.
Faster
supervision

ADVANTAGES OF A GOOD FLOW PATTERN

.
Minimal
back
tracking
.
Smooth
production
flow
.
Improved
scheduling
process
.
Reduced
crowded
conditions
.
Better
house
keeping
.
Logical
work
sequencing
.
Production
problem
�
-
volume
of
production
,class
of
materials,
layout
of
plant
.
Capabilities
of
handling
equipments
available
�
-
adaptability,flexibility,load
capacity,power,speed,space
requirement,
supervision
requirement,
ease
of
maintenance
,environment,
cost
.
The
human
element
involved
�
-
safety

Factors affecting selection of M H equipments

.
Conveyors

-
Belt
conveyors,
Chain
conveyors,
Roller
conveyors,
Pneumatic
conveyors,
bucket
conveyors,
screw
conveyors,
vibratory
conveyors,
chute
or
gravity
conveyors

-
Do
not
require
operators,
inexpensive
to
operate

.
Cranes,
Elevators
and
Hoists

-
cranes
-
overhead
rails
or
ground
rails
or
wheels

-
Elevators
-
between
floors
-
vertically

-
Hoists
-
vertically,
horizontally
-
limited
area
-
electric
or
chain
hoist

.
Industrial
trucks

Types of Material Handling Equipments

Storage equipment
Maintenance
General
classification
of
maintenance
problem
Classification
of
maintenance
problem
based
on
time
span
PM & BM

�
Preventive
Maintenance
:
�The
maintenance
carried
at
predetermined
intervals
or
corresponding
to
prescribed
criteria
and
intended
to
reduce
the
probability
of
failure
or
the
performance
degradation
of
an
item
.
�
�
Breakdown
Maintenance
:
�
Repair
is
undertaken
only
after
failure
of
system
.
Equipment
is
allowed
to
run
till
it
fails
.
Lubricating
and
minor
adjustments
are
done
during
the
period
.
-
Small
factories
where
equipment
are
very
small
and
doesn�t
use
special
tools
-
Isn�t
suitable
for
big
industries
Replacement policy

�
The
replacement
problem
is
concerned
with
the
situation
that
arise
when
some
equipment
needs
replacement
because
of
their
reduced
efficiency,
break
down
or
complete
failure
.
�
In
general,
replacement
problems
are
of
three
types
.
�
1
.
Replacement
of
items(assets)
that
deteriorate
with
time
.
�
2
.
Replacement
of
items(assets)
that
breakdown
completely
.
�
3
.
Replacement
of
items(assets)
that
becomes
out
of
date
due
to
new
developments
.
Replacement
of
items
that
deteriorate
with
time

.
In
this
type,
the
replacement
of
items
takes
place
because
of
gradual
failure,
or
wear
and
tear
of
the
components
of
the
machines
.
This
can
be
further
classified
in
to
following
types
.
.
*Determination
of
economic
life
of
an
asset
.
*Replacement
of
an
existing
asset
with
a
new
asset
.
Determination
of
economic
life
of
an
asset

.
The
economic
life
of
an
asset
is
an
estimation
of
the
period
of
time
over
which
an
asset
can
reasonably
be
used
to
generate
income
and
be
beneficial
to
the
company
.
.
It
is
also
called
as
the
useful
life
and
it
is
generally
different
from
the
actual
physical
life
of
an
asset
.
.
Generally
any
asset
will
have
the
following
cost
components
.
Capital
recovery
cost
-
one
time
costs
associated
with
purchase
of
a
machine
.
Operating
and
maintenance
cost
-
costst
associated
with
running
and
maintenance
of
a
machine
.
.
Total
cost
-
Sum
of
all
the
above
mentioned
costs
.
Figure
shows
various
costs
associated
with
respect
to
the
economic
life
of
an
asset
.
.
From
fig
it
is
clear
that
that
the
capital
recovery
cost
goes
on
decreasing
,the
average
operating
and
maintenance
cost
goes
on
increasing,
and
the
total
cost
decreases
up
to
a
certain
point
and
then
it
starts
increasing
,with
the
increase
in
the
actual
life
of
a
machine
.
The
point
at
which
the
total
cost
is
minimum
is
called
the
economic
life
of
the
machine
.
.
If
the
interest
rate
is
more
than
zero
percent
,then
one
can
use
interest
formulas
to
determine
the
economic
life
.
The
replacement
activities
can
be
evaluated
basd
on
the
present
worth
method
and
annual
equivalent
criterion
.
Replacement
of
existing
asset
with
a
new
asset

.
In
this
method
an
equipment
or
asset
is
replaced
whenever
a
more
economic
alternative
is
available
.
This
alternative
can
be
identified
by
using
annual
equivalent
cost
approach
.
.
In
this
approach
,companies
determine
whether
or
not
they
should
replace
an
existing
asset
with
a
new
asset
.
.
Before
discussing
further
details,
some
preliminary
concepts
which
are
essential
for
this
type
of
replacement
analysis
are
presented
.
They
are
discussed
in
detail
Simple
probabilistic
model
for
items
which
fail
completely(Replacement
of
assets
that
breakdown
completely)

�
In
certain
situations
,failure
occurs
all
of
a
sudden,
instead
of
a
gradual
deterioration
.
The
failure
of
an
item
results
in
complete
breakdown
of
the
system
.
The
sudden
failure
implies
loss
of
production
,idle
labour,idle
inventory
etc
.
Therefore
an
organization
must
prepare
itself
against
these
failures
.
�
Therefore
to
avoid
the
possibility
of
complete
failure,
it
is
necessary
to
formulate
a
suitable
replacement
policy
.
Two
types
of
replacement
policies
are
formulated,
which
are
applicable
for
the
above
mentioned
situation
.
�
A)
individual
replacement
policy
-
in
this
policy
,an
item
is
replaced
immediately
after
its
failure
.
This
policy
also
known
as
mortality
theorem
.
In
this
theorem
mortality
tables
are
used
to
determine
the
life
span
of
any
equipment
or
the
probability
distribution
of
failure
.
�
When
an
item
fais
completely,
the
formulation
of
replacement
policy
depends
upon
the
probability
of
failures
.
Thus
mortality
tables
or
life
testing
techniques
are
computed
to
obtain
a
probability
distribution
of
failure
of
items
in
a
system
.
�
B)Group
replacement
policy
-
In
this,
the
items
are
replaced
in
a
group
after
a
certain
period
say
it,
irrespective
of
the
fact
that
the
items
have
failed
or
not
.
If
any
items
fail
before
its
preventive
maintenance
due
,then
individual
replacement
policy
is
used
.

---
Also
a
compromise
has
been
made
between
the
individual
replacement
policy
and
the
group
replacement
policy
.
Hence
for
a
given
problem
each
of
the
replacement
policies
is
evaluated
and
the
most
economical
policy
is
selected
for
implementation
.
Mortality tables

�
M(t)=number
of
items
surviving
at
time
t
�
M(t
-
1
)=
number
of
items
surviving
at
time
(t
-
1
)
�
N=
Total
number
of
items
in
the
system
�
The
probability
of
failure
of
item
during
the
interval
t
and
(t
-
1
)
is
given
by
�
M(t
-
1
)
-
M(t)/N
�
The
conditional
probability
that
any
item
survived
up
to
age
(t
-
1
)
and
will
fail
in
the
next
period
is
given
by
�
M(t
-
1
)
-
M(t)/M(t
-
1
)
Depreciation
Need for providing depreciation
Causes of Depreciation
External causes of Depreciation
Terms used for depreciation
Methods for providing Depreciation
Determination of Economic life of a Machine
Economic life of a machine
.
Economic
life
of
machine
should
be
determined
by
considering
effect
of
inflation
.
.
Because,
the
scrap
value
of
the
machine
will
be
affected
by
inflation
.
Also
the
operation
and
maintenance
cost
will
be
affected
by
inflation
.
.
For
example
,good
quality
car
engine
resale
value
is
increasing
year
by
year
because
of
partly
due
to
inflation
and
partly
due
to
good
quality
.