Productivity improvement of a manufacturing facility using systematic layout planning

Implementation of lean manufacturing principles and believing in continuous improvement are the tools which help industries to sustain global competition. With the escalation in population, the demand for technology is increased more than ever. This leads to the steady increase in production rates of existing models and even introduction of new product models. These factors often results in "layout modification" of manufacturing industries. Plant layout improves resource utilization and provides means for application of lean tools such as 5S, seven wastes, kanban, Just In Time (JIT), etc. These tools not only contribute in reducing cost but also benefit the organization by improving product quality. This paper provides a comprehensive comparison of different approaches used in layout design. The study also simplifies the application of systematic layout planning (SLP) in the development of new layout. SLP is a technique used for layout development and material flow improvement. A case study of layout design using SLP is presented for a multinational company which manufactures a product with high variety. The results include four possible rearrangements of production departments. These layout alternatives are evaluated on basis of improved accessibility and material flow efficiency criteria. Thus, the economic benefits achieved by overall integration of facility are highlighted. The results illustrate the impact of layout design on elimination of waste and the economic benefits achieved by reducing overall material flow and lead time.