Plant layout (Understanding Through Case Studies)

1. Plant Layout
Understanding Through Case Studies
Presented by: Abhisek Khatua

2. What is Plant Layout ?
“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”.
Physical
Arrangements
Organisation
Structure
Customers Quality

3. Types of Plant Layout
Plant
Layout
Product
Combi
nation
Fixed
Position
Group-
Technol
ogy
Process
Principles of Plant Layout
 Integration
 Minimum Distance
 Cubic Space Utilisation
 Flow
 Maximum Flexibility
 Safety, Security & Satisfaction
 Minimum Material Handling

4. TACO’S NEW FACTORY LAYOUT REDUCES INVENTORIES
AND THROUGHPUT TIMES
TACO a brief Introduction:
 Circular Pumps manufacturer located in Cranston, Rhode Island.
 Circulator pumps are used in forced hot water heating systems to move the water through the pipes.
 Makes both residential and industrial circulator pumps

5.  Old Factory Layout Impact:
Factory Layout Process Layout Lot of Travelling Time Long Waiting Period
Factory Floor Crammed with Inventory
Delivery Time In Weeks & months
 For Improvement:
Analysis: On the basis of various products being produced
Process
Layout
Product
Layout

6. 3 main Bays in Factory ==== >>> 3 Major Product Lines
 Reduced Work-in-Progress
Inventories by more than 30%
 Reduced Throughput Time by
more than 50%
 Products manufactured within a
day or an hour
 Increased Output by more than
50% without any additional
space
 Currently has major market
share
@Source: Taco

7. Layout Considerations in Services
1. Cost per Square Foot for retail locations usually is very expensive (than Manufacturing Space Cost).
2. Service Retail Operations : Designed to maximise Sales per Square Foot.
3. Reduced the area devoted to Back Office (Ex. Restaurants – Reduced space for Kitchen).
4. Customer presence in the Transformation Process.
5. Use of Servicescape : The Ambient
Conditions
The Spatial Layout
and Functionality
The Signs, Symbols,
and Artifacts
@Source: 4Mary Jo Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and Employees,” The Journal of Marketing, April 1992, pp. 57–71.

8. McDonald and The Strategic Impact of Layout
==============================Now major Layout Redesign==============================
 Redesigning of 32,000 outlets in 118 countries.
 Three Separate Dinning Areas:
(a) Linger Zone with comfortable Chairs and Wi-Fi connections
(b) Grab and Go Zone with tall counters
(c) Flexible Zone for Kids and Families
 Facility Layout is Source of Competitive Advantage
@Source: Heizer/Render Principles of Operations Management, 7e
Indoor Seating
(1950)
Drive-Through
Window (1970)
Adding Playing
Areas (1980)
Redesigning of
Kitchens (1990)
Self-Service
Kiosks

9. McDonald’s Assembly Line
Savings of $100,000,000
per year in food costs
@Source: Heizer/Render Principles of Operations Management, 7e

10. KFC and Process Layout
 New Layout:
Raw
Material
Cook Assemble
Finished
Goods
Deliver
 Old Layout:
Customer Place Order
Raw
Material
Cook WIP Assemble Deliver
Customer Place Order

11. Result of KFC’s New Layout
1. Reduces Bottlenecks
2. Reduced Material Handling Cost
3. Effective Space Utilisation
4. Ease of Supervision
5. Appropriate Communication
6. Increase Morale

12. The Secrets of Apple’s Retail Success : Retail Layout
1. Apple never sold their Products directly.
2. Selling Products with Retails like Sears, CompUSA (Huge Failures).
3. 1st Retail Store: In a Mall in Tyson Corner, Virginia. (19th May, 2001)
===================================================================================
"GOOD ARTISTS BORROW, GREAT ARTISTS STEAL"
===================================================================================
 More than 1 Million Visitors. (in 481 stores, in 18 Countries)
 $ 7000 Earning per square foot, in Fifth Avenue Store : $ 35000 Earnings per square foot.
 Fastest Growing retailer to reach $ 1 Billion.
 Trade Marked Retail Layout
 Unspoken Apple Mantra “This Place is Special”
@Source: Steve M. Chazin, www.marketingapple.com

13. Apple’s Retail Layout
1. Minimalistic Layout (free of clutter, cables, and adverts),
2. Bright Lights, high ceilings, and white spaces,
@Source: Kristen Gramigna, retailcustomerexperience.com
 Apple Store Receives for Distinctive Design
and Layout
 Glass Fronted, Rectangular –patterned
 Cantilevered Shelving
 Rectangular Tables arranged in a line in the
middle of the store parallel to the walls
 Multi-Tiered shelving along with rear walls
@Source: www.wired.com , Apple Store Trademark

15. Apple Retail Store Layout Design

16. Recent Trends in Layout
 Benihana’s of Tokyo, a chain of Japanese steak
houses. The kitchen moved to the front of the
house Customers participate in the food
preparation process.
 Office layout: Open Office System (80% Open
and 20% Private)-Spontaneous Communication.
 Modern Warehouses: Automated Storage and
Retrieval ( occupies on 20% of Traditionally
designed Garage) Ex: Parking Garage in
Wolfsburg, Germany.
@Source: Heizer/Render Principles of Operations Management, 7e

17. Conclusion
 Determines Log Run Efficiency.
 Strategic Implications regarding Competitive Priorities (regarding capacity, process, flexibility, cost,
quality, customer, image.
 Effective and Efficient Layout will meet Firm’s competitive requirements.

18. Thank You