FACILITIES. LAYOUT AND MATERIALS HANDLING

1.0 Introduction

The aim should be to locate the factory optimally in an area where readily qualified labour is available and there is a ready market for the goods produced. The plan of the factory and the layout of its facilities influence its effectiveness.

1.1 Siting of a company

To obtain a feasibility study for the establishment of a manufacturing factory, the selection and cost of its location used must be assessed. The factors that affect its location are

(i) availability of land and its cost

(ii) availability of suitably qualified local labour and its likely cost

(iii) nearness to markets for the end product of the factory

(iv) pertinent government policies and degree of security that apply locally

(v) local availability of services like transportation, electricity, natural gas, or potable water.

In a developing country like Nigeria, the available land is plentiful, but is relatively more expensive in city areas like Abuja, Lagos, and Port Harcourt. Hence, to reduce cost, land outside the cities is often sought.

In Nigeria, labour is cheap per hour but it becomes more expensive as one moves towards the cities. Nevertheless to reduce overall costs, transportation costs should be reduced, so the site of the factory should be close to a large market for its products. In developed countries, government policies influence significantly the locations of factories. For instance, factories are set up in high-unemployment areas to comply with the national development policy for the country. In Nigeria, the siting of a factory is often based on political rather than management considerations. Therefore, many government-owned companies exist in economically non-viable locations, for example, the refinery and the fertiliser plant at Kaduna. However, private investors prefer to start companies in their own localities.

Reliable electricity supplies and an adequate transportation infrastructure are essential for most companies. Unfortunately, in Nigeria, companies too often have to provide standby generators, thereby increasing production costs. This is one of the reasons why made-in-Nigeria goods tend to be more expensive than the corresponding imported ones, despite far lower local labour costs.

1.2 Plant Layout

Production problems associated with poor layout can be the

* tendency of the control to be more complicated

* congestion of personnel and materials

* production-line bottlenecks

* excessive rehandling of materials

* longer transportation lines

* greater probability of accidents

* lower employee performances

Wise layout should facilitate overcoming such problems.

1.1.1 Types of plant layout

The aim should be the minimisation of production cost while simultaneously satisfying both technical and management requirements. Some of the challenges are

* producing the desired rate of output

* minimising the production of scrap

* avoiding the occurrence of accidents

* maximising equipment usage

* reducing work in progress

* reducing transportation costs incurred

* making each worker more responsible and hence productive.

Achieving these objectives may require either modifying existing plant or introducing new plant.

1.1.1.1 New layout design

A simple formula that can be used to calculate the number N of machines of the same type that may be required in the layout is N = TP/HC

where T = standard time per unit end product per machine (hours)

P = required production of end products per day

H = number of production hours per day

C = utilisation factor for the plant.

So, for example if (i) a product requires processing on a lathe for 15 minutes; (ii) the required daily production P of the product is 100 units, (iii) the company runs 2 shifts per day, of 8 hours each; and (iv) the plant utilisation factor C is 0.75, calculate the number of machines required to satisfy the daily requirement.

Solution: Standard time per unit, T = 0.25 hr

Required production per day, P = 100

Number of production hours per day, H = 8 × 2 = 16

Therefore, number of machines, N required = (0.25 × 100) / (16 × 0.75) = 2.08

In practice, it will be necessary to install 3 machines.

From the calculation of the required number of machines and ensuring ergonomic principles, the required space is calculated. As stated by Reed1 in determining the floor area required, the following factors need to be considered:

* area required for each machine and its operation

* storage volume requirement for tools, jigs, and fixtures

* each operator's space requirement

* space for incoming-material storage

* space for handling facilities

* space for machine servicing and maintenance requirements

* each plant's service requirements, such as illumination and ventilation.

Space is also required for other activities such as inventory; materials and quality control; storage; transport; reception and dispersal areas for goods; plant maintenance; canteen, washrooms and toilets; and administrative offices.

Departmental Arrangements

(I) Flow pattern of a product: This important consideration for the effective operation of a facility is affected by

* number of components in the manufactured product

* number of operations required in the manufacture of each component

* sequence of these operations

* number of sub-assemblies

* total number of units to be produced

* necessary flows of products between work areas

* amount and shape of space available

* types of processes

* types of flow patterns

* location of service areas

* location of production departments

* material storage

* flexibility desired

* the building's...