Optimization of plant layout

Abstract

The objective of this thesis is to improve the production floor layout of a manufacturing firm using systematic layout planning (SLP) and to evaluate the proposed alternative layouts. This project is conducted at Otoklin Global Business Ltd., a filter Manufacturing company located in at Sakinaka near Chandivali junction. The major problem faced by the company is poor utilization of space, poor material handling and safety hazards. There is high flow intensity between departments which have high interrelationship. This leads to high travelling time and high travelling cost which in turns decreases overall productivity of the company. An alternative layout is proposed using the 11 steps in Systematic Layout Planning, which is a systematic way of generating layout alternatives. The proposed layout involves transferring the departments which have high interrelationship close to each other. The proposed alternative layout is evaluated later. The layout is chosen based on the performance measures which have the most significant improvement, which are total travel distance, total travel time, output, average resource utilization, total average WIP level, total average waiting time and total time spent in manufacturing certain product either job order or in batches. The proposed layout results in smooth material flow, efficient utilization of floor area and increased in the area which can be used for producing more products simultaneously.