Following is a brief analysis of the procedure for laying out the plant of a new undertaking: 1. Objectives 2. Accumulation of the Layout Data 3. Preparation of Charts, Templates, Model and Drawings 4. Compilation of an Overall Plan 5. Relationship 6. Layout Templates 7. Finalised Layout 8. Layout Alteration 9. Arrangement of Service Activities 10. Installation and Test-Run.

1. Objectives:

Every entrepreneur is guided by basic objectives around which the business activities are to planned and executed.

The usual basic objectives are:

(a) Large volume of output,


(b) variety of output,

(c) quality of the output, and

(d) low cost per unit of output.

The management should outline the layout goals touching upon the capacity, production rate, plans for future expansion etc. Production of the specified product at the required rate of output at economical cost is obviously the objective of new plant arrangement.

2. Accumulation of the Layout Data:


After the formulation of broad objectives, the layout engineer should collect the data relating to operational processes and physical equipment necessary for manufacturing a given product. The process analysis is the critical step in layout procedure.

The nature of the operations and their sequence have to be studied and then it will be possible to indicate the location of machines, deployment of personnel and arrangement of equipment.

The process analysis yields the following information:

(i) Bill of materials and list of parts required


(ii) Equipment and machine requisition

(iii) Personnel-skilled and trained-necessary for operating the machines

(iv) Sequence and schedule of operations

3. Preparation of Charts, Templates, Model and Drawings:

On the basis of data collected, the operation process charts, flow process diagrams, templates and model relating to the operations and machines are to be prepared for visualising the perspective of layout. They portray in detail the process of work in all its facets.

4. Compilation of an Overall Plan:


An overall plan embracing the flow of production with allied arrangement should be compiled.

Floor arrangement and flow plan for machinery and processes should be thought of. Depending on the type and scale of industrial operations, the system of layout should be decided upon. Either product layout, or process layout or their combination would be adapted in manner as to fulfil the management policies consistent with the technical aspects of the processes analysed.

The building plan suited to the needs of the layout should be drawn.

A model plot-plan indicating the site, building and its utilisation should be prepared. Plans which permit economical processing, easy materials handling, production flexibility and provision for expansion with minimum investment should be compiled after careful survey and analysis.

5. Relationship:


The relationship between various departments is to be charted and space requirements of all the activities are to be calculated.

6. Layout Templates:

Layout templates and models of machines are to be fixed as per flow plan of operations to achieve balanced capacity.

7. Finalised Layout:

Finalised layout drawings and plant plans are to be submitted to specialists for review and suggestions. Modifications whenever advisable should be made as per their opinions.

8. Layout Alteration:

The building suited to the layout should be bought or constructed or alterations in the existing building may be made as required for installing the layout.


Total floor space, floor load, ceiling heights, doors, windows specifications, elevator size, staircases, passage areas, storage areas-details of these aspects are to be noted and appropriate adjustments in the building have to be made for achieving the layout objectives.

9. Arrangement of Service Activities:

Auxiliary activities are to be provided for in the layout to facilitate smooth working of the plant and assist the personnel in carrying out their assignments properly and promptly.

Service activities include:

(a) Materials handling system through hand, trucks, conveyors, rollers, etc. should be introduced.


(b) Storage, receiving and transporting areas are to be located in contiguity for quick movement of work-in-process and dispatch of finished goods.

(c) Inspection cribs or stations are to be located at each stage of operations as per the production plan.

(d) Provision for maintenance, repairs and servicing of machinery should be made.

(e) Officers or departments doing allied work are to be positioned adjacent to one another.

(f) Employee facilities like locker rooms, toilets, first-aid clinics, dispensary, canteens, parking space, recreation as well as safety devices are to be provided for.

10. Installation and Test-Run:

(a) As per the overall plan supported by charts, diagrams, models, plot plans, the machines, equipment, service stations etc. should be actually installed in the building selected.


(b) When the building is ready and the installations are completed, the new plant should be “turned over to process engineers for trying out of pilot lots.” Test operation of the new plant should be conducted.

The test or trial operation of the new plant would reveal the product results with reference to the design, processing methods, materials handling, quality inspection and safety of the machines. Any hitches in the new plant discovered during the trial- run shall have to be corrected. Thereafter, the plant and its physical facilities are to be handed over for actual production under the guidance of production engineers and administrators.

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