Industrial Organization

Lecture 3 & 4
By
Mohammed Al-Janabi
mohammedk.aljanabi@uokufa.edu.iq

1 Industrial Organization
 Material
Handling Plant Layout Plant Location

Industrial Organization

Production Flow Pattern Workstation

2 Industrial Organization
 Production
• Production is any process or procedure developed to
transform a set of input elements (like men, materials, capital,
information and energy) into a specified set of output
elements (like finished products and services in proper
quantity and quality), thus achieving the objectives of an
enterprise.
• The essence of production is the creation of goods, may be by
the transformation of raw material or by assembling so many
small parts (as in television manufacturing).

3 Industrial Organization
• Input Output Model
 It is one of the basic models of the production system.
 A production system is the set of interconnected input-output
elements and is made up of three component parts namely
inputs, process and outputs (Fig. 2.3).

4 Industrial Organization
• Production systems can be classified as job shop production
batch production mass production and continuous production
These production systems are shown in Figure 1-2

5 Industrial Organization
6 Industrial Organization
 Plant Location
• A plant is a place, where men, materials, money, equipment,
machinery, etc. are brought together for manufacturing
products.
• Plant location means deciding a suitable location, area, place,
etc., where the plant or factory will start functioning.
• Plant location plays a major role in the design of a production
system as it determines the cost of :
1. getting suitable raw material;
2. processing raw material to finished goods; and
3. finished products distribution to customers.

• Hardly any location can be ideal or perfect.

7 Industrial Organization
 Plant Location
• An ideal plant location (Locational Economics) is one which
results in lowest production cost and least distribution cost
per unit.
• The various costs which decide the locational economy are
those of :
1. Land. 6. Freight
2. Building/Rent. 7. In-coming.
3. Equipment and machinery. 8. Out-going.
4. Labour. 9. Raw material
5. Water, power and fuel 10. Taxes, etc.

• Besides these costs, community attitude, community facilities

and housing facilities are also worth considering.
8 Industrial Organization
 Plant Location
Example : From the following data select the most advantageous
location for setting a plant for making transistor radios.

9 Industrial Organization
 Plant Location
Solution:

Site-7 is the most advantageous because:

1. It associates the highest rate of return, 42.5%.
2. Community wants business.
3. Housing facilities are excellent.
10 Industrial Organization
 Plant Layout
• Plant layout means the disposition of the various facilities
(equipment's, material, manpower, etc) and services of the
plant within the area of the site selected previously.
• layout is a planning concerned with the arrangement of
departments , work groups within the departments ,
workstations , machines and stores within a production
facility.
• Plant layout begins with the design of the factory building and
goes up to the location and movement of a work table.
• All the facilities like equipment's, raw materials, machinery,
tools, fixtures, workers, etc. are given a proper place.
• Objectives of Good Plant Layout :
1. Material handling and transportation is minimized and
efficiently controlled.
11 Industrial Organization
 Plant Layout
2. The movements made by the workers are minimized.
3. Waiting time of the semi-finished products is minimized.
4. Working conditions are safer, better (well ventilated
rooms, etc.) and improved.
5. There is increased flexibility for changes in product design
and for future expansion.
6. Plant maintenance is simpler.
7. There are improved work methods and reduced
production cycle times.
8. There is increased productivity and better product quality
with reduced capital cost.
9. A good layout permits materials to move through the
plant at the desired speed with the lowest cost.
12 Industrial Organization
• Facility layout may be classified into four classes as given
bellow:
1. Product Layout
 It is also known as line (type) layout.
 machines are arranged in the sequence in which the raw
material will be operated upon.
 This type of layout is preferred for continuous production.
 This layout is used in refinery , thermal power plant , chemical
or fertilizer industry, etc.
 Figure 2.4 shows a process layout.

13 Industrial Organization
• Advantages • Disadvantages as Compared with
1. Automatic material handling, Process Layout
lesser material handling 1. Poor flexibility in production of
movements, times and costs. new product.
2. Product completes in lesser
time. 2. A breakdown of one machine or
absence of one operator may stop
3. Less skilled workers may serve
the purpose. the entire line of production.
4. increases the productivity. 3. It is difficult to increase
5. Better co-ordination and simple production beyond the capacities
production planning and of the production lines.
control.

14 Industrial Organization
3. Combination Layout
 A combination of process and product layouts combines the
advantages of the both types of layouts.
 In such cases machinery is arranged in a process layout but
the process grouping (a group of number of similar machines)
is then arranged in a sequence to manufacture various types
and sizes of products.
 The point to note is that, no matter the product varies in Size
and type, the sequence of operations remain same or similar.

15 Industrial Organization
4. Fixed Position Layout
 Layout by fixed position of the product is inherent in ship
building, aircraft manufacture (Fig. 4.4) and big pressure
vessels fabrication.
 the product moves past stationary production equipment,
whereas in this case the reverse applies; men and equipment
are moved to the material, which remains at one place and
the product is completed at that place.
 This is generally used for assembly shop.

16 Industrial Organization
 Flow Pattern
• One of the most important phases of plant layout is to achieve
an optimum effective flow of materials (raw materials, and in-
process materials) through the plant.
• Naturally the principle of minimum movements (Le., number
of movements and distance travelled in one move) forms the
basis for optimum effective flow.
• The principle of minimum movements reduces material
handling costs, in-process inventory and space for processing.
• As far as possible a flow pattern should be simple in order to
have easy supervision and control.
• Some of various flow patterns along with their characteristics
and place of application or use are given below:

17 Industrial Organization
18 Industrial Organization
 Workstation
• The work station design affects the production rates,
efficiency and the accuracy with which an operation can be
performed.
• A work station not only needs space for the worker and the
machine, there are plenty of other items which also need
accommodation.
• To determine the cycle time and the minimum number of
workstations by using the following formulas:

19 Industrial Organization
Ex : The following tasks must be performed on an assembly line
in the sequence and times specified in Table

1. Draw the schematic precedence diagram.

2. What is the theoretical minimum number of stations required to
meet a forecast demand of (48 to 50)units per 8-hour day?

20 Industrial Organization
1. Sketch the precedence diagram and mark the task duration.

𝑚𝑖𝑛
8 × 60( )
𝑑𝑎𝑦
𝐶𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒 𝐶 = = 10 𝑚𝑖𝑛 𝑢𝑛𝑖𝑡
𝑢𝑛𝑖𝑡
48 ( )
𝑑𝑎𝑦
38 𝑚𝑖𝑛
𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛 = = 3.8 ≈ 4 𝑤𝑜𝑟𝑘𝑠𝑡𝑎𝑡𝑖𝑜𝑛
10 𝑚𝑖𝑛
21 Industrial Organization
 Workstation Step tasks Time
1 1, 2 and 3 3+4+2= 9 min
2 4 and 5 4+5= 9 min
3 6 and 7 8+2= 10 min
4 8 and 9 4+6= 10 min
Sum 38 min
22 Industrial Organization
 Material Handling
• It has been estimated that average material handling cost is
roughly 20 to 60% of the total production cost.
• the cost of production of an item can be lowered considerably
by making a saving in the material handling cost.
• Material handling involves the movements of materials,
manually or mechanically in batches or one item at a time
within the plant. The movement may be horizontal, vertical or
the combination of horizontal and vertical.
• Material handling emphasizes upon the need of installing
efficient and safe methods and equipment's for material
handling. It has been found that 35 to 40% of the plant
accidents are the results of bad methods of material handling.

23 Industrial Organization
• Industrial Requirements from material transporting and
handling equipment's :
1. minimize the total handling time.
2. promote, easier, safe and cleaner handling.
3. eliminate idle time of workers and machines which would be
there, otherwise, while waiting for the materials for
necessary operations.
4. make material movements fast;
5. decrease fatigue incurred by the workers;
6. add to safety
7. locate, and stock materials better and in less space.
8. lastly their operations can be automated to increase
production.

24 Industrial Organization
• Classification of Material Handling Equipment's:
A. industrial Trucks : Flexible, versatile and most extensively
used. Such as (2 and 4 wheeled, walk and driver ride)
B. Cranes : such as (Overhead bridge crane, Gantry crane and
Jib crane)
C. Hoists : such as (Chain type (manual), Pneumatic and
Electrical)
D. Monorail : such as (Trolley and Carrier)
E. Conveyors: such as (Belt conveyor, Roller gravity, Roller line,
Drag, Chain or cable and Pipe line)

25 Industrial Organization
 Hoists

26 Industrial Organization
 Monorail

Conveyors
27 Industrial Organization