PRODUCTIONS & OPERATIONS MANAGEMENT (UNIT-3)

 Facility Layout and Design:

Facility layout and design is an important component of a business's overall operations, both in
terms of maximizing the effectiveness of the production process and meeting the needs of employees. The
basic objective of layout is to ensure a smooth flow of work, material, and information through a system. The
basic meaning of facility is the space in which a business's activities take place. The layout and design of that
space impact greatly how the work is done—the flow of work, materials, and information through the system.
The key to good facility layout and design is the integration of the needs of people (personnel and customers),
materials (raw, finishes, and in process), and machinery in such a way that they create a single, well-
functioning system. To produce products or services business systems utilize various facilities like plant and
machineries, ware houses etc. Facilities can be broadly defined as buildings where people, material, and
machines come together for a stated purpose – typically to make a tangible product or provide a service.

The facility must be properly managed to achieve its stated purpose while satisfying several
objectives. Such objectives include producing a product or producing a service

 at lower cost,
 at higher quality,
 or using the least amount of resources.

 Facility Layout Objective:

A model facility layout should be able to provide an ideal relationship between raw material,
equipment, manpower and final product at minimal cost under safe and comfortable environment. An efficient
and effective facility layout can cover following objectives:

 To provide optimum space to organize equipment and facilitate movement of goods and to create safe
and comfortable work environment.
 To promote order in production towards a single objective
 To reduce movement of workers, raw material and equipment
 To promote safety of plant as well as its workers
 To facilitate extension or change in the layout to accommodate new product line or technology up
gradation
 To increase production capacity of the organization

An organization can achieve the above-mentioned objective by ensuring the following:

 Better training of the workers and supervisors.
 Creating awareness about of health hazard and safety standards
 Optimum utilization of workforce and equipment
 Encouraging empowerment and reducing administrative and other indirect work

 Principles of Plant Layout:

 Principle of integration: A good layout is one that integrates men, materials, machines and supporting
services and others in order to get the optimum utilization of resources and maximum effectiveness.
 Principle of minimum distance: This principle is concerned with the minimum travel (or movement) of
man and materials. The facilities should be arranged such that, the total distance travelled by the men and
materials should be minimum and as far as possible straight line movement should be preferred.
 Principle of cubic space utilization: The good layout is one that utilizes both horizontal and vertical
space. It is not only enough if only the floor space is utilized optimally but the third dimension, i.e., the
height is also to be utilized effectively.
 Principle of flow: A good layout is one that makes the materials to move in forward direction towards the
completion stage, i.e., there should not be any backtracking.
  Principle of maximum flexibility: The good layout is one that can be altered without much cost and
time, i.e., future requirements should be taken into account while designing the present layout.
 Principle of safety, security and satisfaction: A good layout is one that gives due consideration to
workers safety and satisfaction and safeguards the plant and machinery against fire, theft, etc.
 Principle of minimum handling: A good layout is one that reduces the material handling to the minimum

 Factors affecting Facility Layout:

Facility Location is the right location for the manufacturing facility, it will have sufficient
access to the customers, workers, transportation, etc. Overall objective of an organization is to satisfy and
delight customers with its product and services. Therefore, for an organization it becomes important to have
strategy formulated around its manufacturing unit. A manufacturing unit is the place where all inputs such as
raw material, equipment, skilled labors, etc. come together and manufacture products for customers. One of
the most critical factors determining the success of the manufacturing unit is the location.

Facility location determination is a business critical strategic decision. There are several factors,
which determine the location of facility among them competition, cost and corresponding associated effects.
Facility location is a scientific process utilizing various techniques.

Facility location is the process of determining a geographic site for a firm’s operations.
Managers of both service and manufacturing organizations must weigh many factors when assessing the
desirability of a particular site, including proximity to customers and suppliers, labor costs, and transportation
costs. Location conditions are complex and each comprises a different Characteristic of a tangible (i.e. Freight
rates, production costs) and non-tangible (i.e. reliability, frequency security, quality) nature.

Location conditions are hard to measure. Tangible cost based factors such as wages and
products costs can be quantified precisely into what makes locations better to compare. On the other hand
non-tangible features, which refer to such characteristics as reliability, availability and security, can only be
measured along an ordinal or even nominal scale. Other non-tangible features like the percentage of
employees that are unionized can be measured as well. To sum this up non-tangible features are very
important for business location decisions. It is appropriate to divide the factors, which influence the plant
location or facility location on the basis of the nature of the organization as:

 CONTROLLABLE FACTORS

1) Proximity to markets: Every company is expected to serve its customers by providing goods and
services at the time needed and at reasonable price organizations may choose to locate facilities close to
the market or away from the market depending upon the product. When the buyers for the product are
concentrated, it is advisable to locate the facilities close to the market. Locating nearer to the market is
preferred if
 The products are delicate and susceptible to spoilage.
 After sales services are promptly required very often.
 Transportation cost is high and increase the cost significantly.
 Shelf life of the product is low.
Nearness to the market ensures a consistent supply of goods to customers and reduces the cost of
transportation.

2) Supply of materials: It is essential for the organization to get raw material in right qualities and time in
order to have an uninterrupted production. This factor becomes very important if the materials are
perishable and cost of transportation is very high. General guidelines regarding effects of raw materials on
plant location are:
 When a single raw material is used without loss of weight, locate the plant at the raw material
source, at the market or at any point in between.
 When weight loosing raw material is demanded, locate the plant at the raw material source.
 When raw material is universally available, locate close to the market area.
 If the raw materials are processed from variety of locations, the plant may be situated so as to
minimize total transportation costs.
Nearness to raw material is important in case of industries such as sugar, cement, jute and cotton textiles.
 3) Transportation facilities: Speedy transport facilities ensure timely supply of raw materials to the
company and finished goods to the customers. The transport facility is a prerequisite for the location of the
plant. There are five basic modes of physical transportation, air, road, rail, water and pipeline. Goods that
are mainly intended for exports demand a location near to the port or large airport. The choice of transport
method and hence the location will depend on relative costs, convenience, and suitability. Thus
transportation cost to value added is one of the criteria for plant location.

4) Infrastructure availability: The basic infrastructure facilities like power, water and waste disposal, etc.,
become the prominent factors in deciding the location. Certain types of industries are power hungry e.g.,
aluminum and steel and they should be located close to the power station or location where uninterrupted
power supply is assured throughout the year. The non-availability of power may become a survival
problem for such industries. Process industries like paper, chemical, cement, etc., require continuous.
Supply of water in large amount and good quality, and mineral content of water becomes an important
factor. A waste disposal facility for process industries is an important factor, which influences the plant
location.

5) Labor and wages: The problem of securing adequate number of labor and with skills specific is a factor
to be considered both at territorial as well as at community level during plant location. Importing labor is
usually costly and involve administrative problem. The history of labor relations in a prospective
community is to be studied. Prospective community is to be studied. Productivity of labor is also an
important factor to be considered. Prevailing wage pattern, cost of living and industrial relation and
bargaining power of the unions’ forms in important considerations.

6) External economies: External economies of scale can be described as urbanization and locational
economies of scale. It refers to advantages of a company by setting up operations in a large city while the
second one refers to the “settling down” among other companies of related Industries. In the case of
urbanization economies, firms derive from locating in larger cities rather than in smaller ones in a search
of having access to a large pool of labor, transport facilities, and as well to increase their markets for
selling their products and have access to a much wider range of business services.

7) Capital: By looking at capital as a location condition, it is important to distinguish the physiology of

fixed capital in buildings and equipment from financial capital. Fixed capital costs as building and
construction costs vary from region to region. But on the other hand buildings can also be rented and
existing plants can be expanded. Financial capital is highly mobile and does not very much influence
decisions. For example, large Multinational Corporations such as Coca- Cola operate in many different
countries and can raise capital where interest rates are lowest and conditions are most suitable.
Capital becomes a main factor when it comes to venture capital. In that case young, fast
growing (or not) high tech firms are concerned which usually have not many fixed assets. These firms
particularly need access to financial capital and also skilled educated employees.

 UNCONTROLLABLE FACTORS

1) Government policy: The policies of the state governments and local bodies concerning labor laws,
building codes, safety, etc., are the factors that demand attention. In order to have a balanced regional
growth of industries, both central and state governments in our country offer the package of incentives
to entrepreneurs in particular locations. The incentive package may be in the form of exemption from a
sales tax and excise duties for a specific period, soft loan from financial institutions, subsidy in
electricity charges and investment subsidy. Some of these incentives may tempt to locate the plant to
avail these facilities offered.

2) Climate conditions: The geology of the area needs to be considered together with climatic conditions
(humidity, temperature). Climates greatly influence human efficiency and behavior. Some industries
require specific climatic conditions e.g., textile mill will require humidity.

3) Supporting industries and services: Now a days the manufacturing organization will not make all the
components and parts by itself and it subcontracts the work to vendors. So, the source of supply of
component parts will be the one of the factors that influences the location.
 The various services like communications, banking services professional consultancy services
and other civil amenities services will play a vital role in selection of a location.

4) Community and labor attitudes: Community attitude towards their work and towards the prospective
industries can make or mar the industry. Community attitudes towards supporting trade union activities
are important criteria. Facility location in specific location is not desirable even though all factors are
favoring because of labor attitude towards management, which brings very often the strikes and
lockouts.

5) Community Infrastructure: All manufacturing activities require access to a community infrastructure,

most notably economic overhead capital, such as roads, railways, port facilities, power lines and service
facilities and social overhead capital like schools, universities and hospitals.

These factors are also needed to be considered by location decisions as infrastructure is enormously
expensive to build and for most manufacturing activities the existing stock of infrastructure provides
physical restrictions on location possibilities.

 Types of Layouts:
Layouts can be classified into the following five categories:
1) Process layout
2) Product layout
3) Combination layout
4) Fixed position layout
5) Group layout

1) Process layout: Process layout is recommended for batch production. All machines performing similar
type of operations are grouped at one location in the process layout e.g., all lathes, milling machines, etc.
are grouped in the shop will be clustered in like groups. Thus, in process layout the arrangement of
facilities are grouped together according to their functions.
A typical process layout is shown in the following figure. The flow paths of material through
the facilities from one functional area to another vary from product to product. Usually the paths are long
and there will be possibility of backtracking. Process layout is normally used when the production volume
is not sufficient to justify a product layout. Typically, job shops employ process layouts due to the variety
of products manufactured and their low production volumes.

Advantages:
 In process layout machines are better utilized and fewer machines are required.
 Flexibility of equipment and personnel is possible in process layout.
 Lower investment on account of comparatively less number of machines and lower cost of general
purpose machines.
 Higher utilization of production facilities.
 A high degree of flexibility with regards to work distribution to machineries and workers.
 The diversity of tasks and variety of job makes the job challenging and interesting.
  Supervisors will become highly knowledgeable about the functions under their department.

Limitations
 Backtracking and long movements may occur in the handling of materials thus, reducing material
handling efficiency.
 Material handling cannot be mechanized which adds to cost.
 Process time is prolonged which reduce the inventory turnover and increases the in- process inventory.
 Lowered productivity due to number of set-ups.
 Throughput (time gap between in and out in the process) time is longer.
 Space and capital are tied up by work-in-process.

2) Product layout: In this type of layout, machines and auxiliary services are located according to the
processing sequence of the product. If the volume of production of one or more products is large, the
facilities can be arranged to achieve efficient flow of materials and lower cost per unit. Special purpose
machines are used which perform the required function quickly and reliably.
The product layout is selected when the volume of production of a product is high such that a
separate production line to manufacture it can be justified. In a strict product layout, machines are not
shared by different products. Therefore, the production volume must be sufficient to achieve satisfactory
utilization of the equipment. A typical product layout is shown in the following figure.

Advantages
 The flow of product will be smooth and logical in flow lines.
 In-process inventory is less.
 Throughput time is less.
 Minimum material handling cost.
 Simplified production, planning and control systems are possible.
 Less space is occupied by work transit and for temporary storage.
 Reduced material handling cost due to mechanized handling systems and straight flow.
 Perfect line balancing which eliminates bottlenecks and idle capacity.
 Manufacturing cycle is short due to uninterrupted flow of materials.
 Small amount of work-in-process inventory.
 Unskilled workers can learn and manage the production.

Limitations
 A breakdown of one machine in a product line may cause stoppages of machines in the downstream of
the line.
 A change in product design may require major alterations in the layout.
 The line output is decided by the bottleneck machine.
 Comparatively high investment in equipment’s is required.
 Lack of flexibility. A change in product may require the facility modification.

3) Combination layout: A combination of process and product layouts combines the advantages of both
types of layouts. A combination layout is possible where an item is being made in different types and
 sizes. Here machinery is arranged in a process layout but the process grouping is then arranged in a
sequence to manufacture various types and sizes of products. It is to be noted that the sequence of
operations remains same with the variety of products and sizes. The following figure shows a combination
type of layout for manufacturing different sized gears.

4) Fixed
position
layout: This
is also called
the project
type of
layout. In
this type of
layout, the
material, or
major
components
remain in a
fixed
location and
tools, machinery, men and other materials are brought to this location. This type of layout is suitable when
one or a few pieces of identical heavy products are to be manufactured and when the assembly consists of
large number of heavy parts, the cost of transportation of these parts is very high.
It is also called static product layout in which the physical characteristics of the product dictate
as to which type of machine and men are brought to the product. This type layout is inherent in ship
building, aircraft manufacture and big pressure vessels fabrication. In other type layout the product moves
past stationary production equipment where as in this case men and equipment are moved to the material
at one place and the product is completed at the place where the material lies.

Advantages
 Helps in job enlargement and upgrades the skills of the operators.
 The workers identify themselves with a product in which they take interest and pride in doing the job.
 Greater flexibility with this type of layout.
 Layout capital investment is lower.

5) Group layout: There is a trend now to bring an element of flexibility into manufacturing system as regards
to variation in batch sizes and sequence of operations. A grouping of equipment for performing a sequence
of operations on family of similar components or products has become all the important.
Group technology (GT) is the analysis and comparisons of items to group them into families
with similar characteristics. GT can be used to develop a hybrid between pure process layout and pure
flow line (product) layout. This technique is very useful for companies that produce variety of parts in
small batches to enable them to take advantage and economics of flow line layout. The application of
group technology involves two basic steps; first step is to determine component families or groups. The
second step in applying group technology is to arrange the plants equipment used to process a particular
family of components. This represents small plants within the plants. The group technology reduces
production planning time for jobs. It reduces the set-up time.
In this type of layout a set of machinery or equipment is grouped together in a section so that
each group of machines or equipment is used to perform similar operations to produce a family of
 components. These machines grouped in to cells. It minimizes the sum of cost of transport and the cost of
equipment.

Advantages
 Component standardization and rationalization.
 Reliability of estimates.
 Effective machine operation and productivity.
 Customer service.
 It can decrease the paper work and overall production time.
 Decreases the work-in-progress, work movement & overall cost.

Limitations
 This type of layout may not be feasible for all situations. If the product mix is completely dissimilar,
then we may not have meaningful cell formation.

 THE SYSTEMATIC
LAYOUT PLANNING:
Systematic Layout Planning (SLP)
consists of a framework of phases through which each
layout project passes; a pattern of procedures for step-
by-step planning; and a set of conventions for
identifying, visualizing, and rating the various
activities, relationships, and alternatives involved in
any layout project.
Systematic layout planning is an
organized way to conduct layout planning, it consists
of a framework of phases, a pattern of procedures and
a set of conventions for identifying, rating and
visualizing the elements and areas involved in a plan.
Each layout rests on three fundamentals:
 RELATIONSHIPS - degree of closeness
desired among things
 SPACE - the amount, kind, shape of
configuration of the things to be laid out
  ADJUSTMENTS - arrangement of things into a realistic best fit
These are the heart of any layout plan regardless of products, processes or size of project.
Data input of the pattern is most significant in a process and by planning the layout around the
sequence and intensity of material movement we attain a progressive flow through the areas involved. In
addition many supporting service areas must be planned & integrated, thus developing activity relationships.
These are combined into Flow and / or Activity Relationship diagram. Here activities, departments or areas
are geographically related to each other without consideration of actual space required. Next the space
requirements are developed from process machinery and equipment necessary or service facilities involved.
Area requirements must be balanced against space available. Then the area allowed for each activity is hung
on the activity relationship diagram to form a Space Relationship Diagram.
This is essentially a layout but is not effective unless adjusted or manipulated to integrate with
space and modifying considerations hence we get various alternatives and each must be tested against
practical limitations like
 cost
 safety
 employee preference
Remember each alternative has to work the problem lies in which one to select at this point a cost analysis of
some kind should be made for comparison and justification as a result one may be chosen although frequently
a modification or combination of two or more layouts may be chosen.

 MATERIAL HANDLING SYSTEMS:

Haynes defines “Material handling embraces the basic operations in connection with the
movement of bulk, packaged and individual products in a semi-solid or solid state by means of gravity
manually or power-actuated equipment and within the limits of individual producing, fabricating, processing
or service establishment”. Material handling does not add any value to the product but adds to the cost of the
product and hence it will cost the customer more. So, the handling should be kept at minimum. Material
handling in Indian industries accounts for nearly 40% of the cost of production. Out of the total time spent for
manufacturing a product, 20% of the time is utilized for actual processing on them while the remaining 80%
of the time is spent in moving from one place to another, waiting for the processing. Poor material handling
may result in delays leading to idling of equipment.
Materials handling can be also defined as ‘the function dealing with the preparation, placing
and positioning of materials to facilitate their movement or storage’. Material handling is the art and science
involving the movement, handling and storage of materials during different stages of manufacturing. Thus,
the function includes every consideration of the product except the actual processing operation. In many
cases, the handling is also included as an integral part of the process. Through scientific material handling
considerable reduction in the cost as well as in the production cycle time can be achieved.

 Objectives of Material Handling Systems:

Following are the objectives of material handling:
 Minimize cost of material handling.
 Minimize delays and interruptions by making available the materials at the point of use at right quantity
and at right time.
 Increase the productive capacity of the production facilities by effective utilization of capacity and
enhancing productivity.
 Safety in material handling through improvement in working condition.
 Maximum utilization of material handling equipment.
 Prevention of damages to materials.
 Lower investment in process inventory.

 Principles of Material Handling Systems:

1) Planning principle: All handling activities should be planned.
2) Systems principle: Plan a system integrating as many handling activities as possible and co-coordinating
the full scope of operations (receiving, storage, production, inspection, packing, warehousing, supply and
transportation).
3) Space utilization principle: Make optimum use of cubic space.
4) Unit load principle: Increase quantity, size, weight of load handled.
 5) Gravity principle: Utilize gravity to move a material wherever practicable.
6) Material flow principle: Plan an operation sequence & equipment arrangement to optimize material
flow.
7) Simplification principle: Reduce combine or eliminate unnecessary movement and/or equipment.
8) Safety principle: Provide for safe handling methods and equipment.
9) Mechanization principle: Use mechanical or automated material handling equipment.
10) Standardization principle: Standardize method, types, size of material handling equipment.
11) Flexibility principle: Use methods and equipment that can perform a variety of task and applications.
12) Equipment selection principle: Consider all aspect of material, move and method to be utilized.
13) Dead weight principle: Reduce the ratio of dead weight to pay load in mobile equipment.
14) Motion principle: Equipment designed to transport material should be kept in motion.
15) Idle time principle: Reduce idle time/unproductive time of both MH equipment and man power.
16) Maintenance principle: Plan for preventive maintenance or scheduled repair of all handling equipment.
17) Obsolescence principle: Replace obsolete handling methods/equipment when more efficient
method/equipment will improve operation.
18) Capacity principle: Use handling equipment to help achieve its full capacity.
19) Control principle: Use material handling equipment to improve production control, inventory control
and other handling.
20) Performance principle: Determine efficiency of handling performance in terms of cost per unit handled
which is the primary criterion.

 Selection Of MH Equipment:
Selection of Material Handling equipment is an important decision as it affects both cost and efficiency of
handling system. The following factors are to be taken into account while selecting material handling
equipment.
 Properties Of The Material: Whether it is solid, liquid or gas, and in what size, shape and weight it is to
be moved, are important considerations and can already lead to a preliminary elimination from the range
of available equipment under review. Similarly, if a material is fragile, corrosive or toxic this will imply
that certain handling methods and containers will be preferable to others.
 Layout & Characteristics Of The Building: Another restricting factor is the availability of space for
handling. Low-level ceiling may preclude the use of hoists or cranes, and the presence of supporting
columns in awkward places can limit the size of the material-handling equipment. If the building is
multi-storied, chutes or ramps for industrial trucks may be used. Layout itself will indicate the type of
production operation (continuous, intermittent, fixed position or group) & can indicate some items of
equipment that will be more suitable than others. Floor capacity also helps in selecting the best material
handling equipment.
 Production Flow: If the flow is fairly constant between two fixed positions that are not likely to change,
fixed equipment such as conveyors or chutes can be successfully used. If, on the other hand, the flow is
not constant and the direction changes occasionally from one point to another because several products
are being produced simultaneously, moving equipment such as trucks would be preferable.
 Cost Considerations: This is one of the most important considerations. The above factors can help to
narrow the range of suitable equipment, while costing can help in taking a final decision. Several cost
elements need to be taken into consideration when comparisons are made between various items of
equipment that are all capable of handling the same load. Initial investment and operating and
maintenance costs are the major cost to be considered. By calculating and comparing the total cost for
each of the items of equipment under consideration, a more rational decision can be reached on the most
appropriate choice.
 Nature of Operations: Selection of equipment also depends on nature of operations like whether
handling is temporary or permanent, whether the flow is continuous or intermittent and material flow
pattern-vertical or horizontal.
 Engineering Factors: Selection of equipment also depends on engineering factors like door and ceiling
dimensions, floor space, floor conditions and structural strength.
 Equipment Reliability: Reliability of the equipment and supplier reputation and the after-sale service
also plays an important role in selecting material handling equipment.

 MATERIAL HANDING EQUIPMENTS:

Broadly material handling equipment’s can be classified into two categories, namely:
 1) Fixed path equipment, and
2) Variable path equipment.

Fixed path equipments which move in a fixed path. Conveyors, monorail devices, chutes and pulley
drive equipments belong to this category. A slight variation in this category is provided by the overhead
crane, which though restricted, can move materials in any manner within a restricted area by virtue of its
design. Overhead cranes have a very good range in terms of hauling tonnage and are used for handling bulky
raw materials, stacking and at times palletizing.
Variable path equipments have no restrictions in the direction of movement although their size is a
factor to be given due consideration trucks, forklifts mobile cranes and industrial tractors belong to this
category. Forklifts are available in many ranges, they are maneuverable and various attachments are provided
to increase their versatility.

Material Handing Equipments may be classified in five major categories:

1) CONVEYORS:
Conveyors are useful for moving material between two fixed workstations, either continuously or
intermittently. They are mainly used for continuous or mass production operations indeed, they are
suitable for most operations where the flow is more or less steady. Conveyors may be of various types,
with rollers, wheels or belts to help move the material along: these may be power-driven or may roll
freely. The decision to provide conveyors must be taken with care, since they are usually costly to install;
moreover, they are less flexible and, where two or more converge, it is necessary to coordinate the
speeds at which the two conveyors move.
2) INDUSTRIAL TRUCKS:
Industrial trucks are more flexible in use than conveyors since they can move between various points and
are not permanently fixed in one place. They are, therefore, most suitable for intermittent production and
for handling various sizes and shapes of material. There are many types of truck- petrol-driven, electric,
hand-powered, and so on. Their greatest advantage lies in the wide range of attachments available; these
increase the trucks ability to handle various types and shapes of material.
3) CRANES AND HOISTS:
The major advantage of cranes and hoists is that they can move heavy materials through overhead space.
However, they can usually serve only a limited area. Here again, there are several types of crane and
hoist, and within each type there are various loading capacities. Cranes and hoists may be used both for
intermittent and for continuous production.
4) CONTAINERS:
These are either ‘dead’ containers (e.g. Cartons, barrels, skids, pallets) which hold the material to be
transported but do not move themselves, or ‘live’ containers (e.g. wagons, wheelbarrows or computer
self-driven containers). Handling equipments of this kind can both contain and move the material, and is
usually operated manually.
5) ROBOTS:
Many types of robot exist. They vary in size, and in function and maneuverability. While many robots
are used for handling and transporting material, others are used to perform operations such as welding or
spray painting. An advantage of robots is that they can perform in a hostile environment such as
unhealthy conditions or carry on arduous tasks such as the repetitive movement of heavy materials.

The choice of material-handling equipment among the various possibilities that exist is not easy. In several
cases the same material may be handled by various types of equipments, and the great diversity of equipment
and attachments available does not make the problem any easier. In several cases, however, the nature of the
material to be handled narrows the choice. Some of the material handling equipment are shown in the
following figures.

 Guidelines For Effective Utilization Of Material Handling Equipments:

The following guidelines are invaluable in the design and cost reduction of the materials handling system:
 As material handling adds no value but increases the production cycle time, eliminate handling
wherever possible. Ideally there should not be any handling at all!
 Sequence the operations in logical manner so that handling is unidirectional and smooth.
  Use gravity wherever possible as it results in conservation of power and fuel.
 Standardize the handling equipments to the extent possible as it means interchangeable usage, better
utilization of handling equipments, and lesser spares holding.
 Install a regular preventive maintenance programme for material handling equipments so that downtime
is minimum.
 In selection of handling equipments, criteria of versatility and adaptability must be the governing
factor. This will ensure that investments in special purpose handling equipments are kept at a
minimum.
 Weight of unit load must be maximum so that each ‘handling trip’ is productive.
 Work study aspects, such a elimination of unnecessary movements and combination of processes
should be considered while installing a material handling system.
 Non-productive operations in handling, such as slinging, loading, etc., should be kept at a minimum
through appropriate design of handling equipment. Magnetic cranes for scrap movement and loading in
furnaces combination of excavators and tippers for ores loading and unloading in mines are examples
in this respect.
 Location of stores should be as close as possible to the plant which uses the materials. This avoids
handling and minimizing investment in material handling system.
 Application of OR techniques such as queuing can be very effective in optimal utilization of materials
handling equipments.
 A very important aspect in the design of a material handling system is the safety aspect. The system
designed should be simple and safe to operate.
 Avoid any wasteful movements-method study can be conducted for this purpose.
 Ensure proper coordination through judicious selection of equipments and training of workmen.

 Relationship Between Plant Layout And Material Handling:

There is a close relationship between plant layout and material handling. A good layout ensures minimum
material handling and eliminates re-handling in the following ways:
 Material movement does not add any value to the product so, the material handling should be kept at
minimum though not avoid it. This is possible only through the systematic plant layout. Thus a good
layout minimizes handling.
 The productive time of workers will go without production if they are required to travel long distance
to get the material tools, etc. Thus a good layout ensures minimum travel for workman thus enhancing
the production time and eliminating the hunting time and travelling time.
 Space is an important criterion. Plant layout integrates all the movements of men, material through a
well-designed layout with material handling system.
 Good plant layout helps in building efficient material handling system. It helps to keep material
handling shorter, faster and economical. A good layout reduces the material backtracking, unnecessary
workmen movement ensuring effectiveness in manufacturing. Thus a good layout always ensures
minimum material handling.