FACILITY LAYOUT AND DESIGN

A case study of a soap manufacturing company in Nigeria

Abstract

The facility layout design as an inevitable component of business

operations, and also very much useful in the elimination of unjustified
cost of material handling. The facilities on ground in a soap
manufacturing company were observed with the arrangement of
activities work centres and the workforce capacity and capability
carefully noted. Production routing of the company was also observed
and the flow process chart, activity-relationship template, activity
relationship chart, and degree of closeness of each department was
drawn. And it was observed that an study of material handling
technique might yield monumental savings and some possible line
balancing will combine to reduce downtime and correspondingly cost
reduction which gives a very reasonable increase in profit.

1.0 Introduction

The three main types of layout in manufacturing systems are product

layout, process layout, and group layout, which is further categorized into
flow line, cell, and centre. According to Tompkins (2003), the distinction
between these types of layout is made based on system characteristics such
as production volume and product variety. It is stated that product layout
(flow shop) is associated with high volume production and low product
variety, while process layout (job shop) is associated with low-volume
production and high. Facility layout design determines how to arrange,
locate, and distribute the equipment and support services in a
manufacturing facility to achieve minimization of overall production time,
maximization of operational and arrangement flexibility, maximization of
turnover of work-in process (WIP) and maximization of factory output in
conformance with production schedules.

The efficiency of a layout is typically measured in terms of material

handling (transportation) cost. The material handling costs are directly
influenced by the distances a unit load must travel. Moreover, an
efficient layout results in an effective material flow path with no
 backtracking, congestion, undesirable intersections with other paths,
and bypassing. An effective flow within a facility includes the
progressive movement of materials, information, or people between
departments. The following principles have been observed to frequently
result in effective flow: maximize directed flow paths and minimize flow.
A directed flow path is an uninterrupted flow path progressing directly
from origination to destination. An uninterrupted flow path is a flow
path with no backtracking and that does not create congestion,
undesirable intersections with other paths, and bypassing.

According to Balakrishnan and Cheng (2007), it was estimated that

over $250 billion is spent annually in the United States on facilities planning
and re-planning. Further, between 20%- 50% of the total costs within
manufacturing are related to material handling and effective facility
planning can reduce these costs 10-30%. The challenge is to complete a
facility project with the fewest number of errors.

2. Methodology and Procedure

A soap manufacturing company was taken for case study and the
facilities on ground were observed with the arrangement of activities
work centre carefully noted, also was the workforce capacity and
capability. This formed the tool for the analysis of the existing plant.
Sources for data collection are:

(i.) Interview with Key Personnel Officers: Information was gotten

through discussions with personnel officers and cost of materials,
equipment, company annual profit and the likes was collected.
(ii.) Work measurement of task: Data relating to standard time required to
perform each operation was established.
(iii.) Physical study: All information concerning the physical activities and all
intricate and complex aspect of the job were obtained.
(iv.) Study of organization past record: Previous records and necessary data
were obtained from the past work reports and past work order sheet.
3. Data Collection and Analysis.

In the process of gathering data concerning the various operation

of the firm, there is a large number of detailed information which could
generate problems in the analysis of complex long process. For this
reason, a system of charts and diagram has been developed to take care
of any difficulty, with the use of some set of standard symbols. Some of
these symbols are:

Operation

Inspection

Transportation

Storage

Delay

The actual production routing presently employed in the company

is as presented in table 1, it is the sequence of all operations involved in
the production of soap.
Figure 1 shows the operation process chart derived from the
combination of the production processes and depicted by standard
symbols for each process.
A flow process chart (Worker, Material & Equipment type) was
designed using the information from the operation process chart and is
shown in table 2.
Table 1: Production Routing

Operation
Description Machine
No.
Mixing soap material and Mixer and screw
1.
conveying. conveyor.
Pressing soap material to Triple roll mill and
2.
increase surface area. roll mill conveyor.

3. Compressing and Extruding. Vacuum plodder.

4. Cutting soap bars. Cutter.

5. Detecting metal particles. Metal detector.

Stamping of soap names and

other accessories on
6. Stamper.
the soap and cutting the soap to
soap cake.
Wrapping of soap cake in its Khosla Wrapping
7.
wrapper. Machine
Printing of information on the
8. Coding machine
soap wrapper.
Packing of soap cakes into
9. Packing
carton.
Sealing the carton by cello
10. Taping machine
tapping machine.
 MIX SOAP
CONVEY THE SOAP

PRESS THE MATERIAL IN A ROOLMILL

CONVEY THE PRESSED MATERIAL

COMPRESS & EXTRUDE IN A VACCUM

CUT INTO SOAP

INSPECT

STAMP INFORMATION ON SOAP ANT CUT

WRAP

PRINT INFORMATION ON WRAPER

PACK

SEAL CARTOON

Fig 1: The company operation process chart

IE 5602 – FACILITY DESIGN

ASSIGNMENT

CASE STUDY REPORT

BY

ARAVINDH KUMAR . R

(2020108004)

&

SHNEHA . P

(2020108017)

B.E III SEMESTER

INDUSTRIAL ENGINEERING
 Table 2: Flow Process Chart Worker/Material/Equipment Type

Qty Distance Time Remarks

MIX SOAP MATERIALS.

CONVEY THE MIXEDMATERIAL. PRESS THE

MATERIAL IN A ROOLMILL.CONVEY THE

PRESS MATERIAL.

COMPRESS & EXTRUDE IN A VACCUM

PLODDER.

CUT INTO SOAP BARS.

INSPECT

STAMP INFORMATION ON SOAPAND CUTINTO

SOAP CAKE.

WRAP SOAP.

PRINT SOAP INFORMATION ON

WRAPPER.

PACK.

SEAL CARTON.

4. Activity relationship

Material handling and plant layout are so interwoven that they cannot be
separated. The material handling equipment choice will affect the plant layout
design which will reflect in the handling time. A major statement can say that the
primary goal in increasing the productivity of this organization is good and proper
material handling. Reduction in material in-process time can only be achieved
when related activities are situated close to each other, thereby reducing
unnecessary movement and activities within the process flow. Other reasons for
putting related activities side by side are; to carry out similar task, to improve
degree of personnel contact, to reduce noise disturbance, using same work
space, proper arrangement of work flow, use of similar records, use of same
equipment. The existing production floor layout is presented in figure 2 below.
 LABORATORY

TANK
FARM

WORK RAW MATERIAL

WAREHOUSE
STORE
IN
PRODUCTION
LINE SAPONIFICATION PROGRESS
PLANT
ENGINEERING
AREA
STORE

Fig 2: Production floor layout

In other to develop an activity relationship chart, a set of codes representing

the degree of closeness as shown in table 3 was used. And a chart showing the
relationship between all departments within the organization towards the
achievement of the overall goal, that is soap production, was developed and is as
shown in figure 3. Also, the degree of closeness of each department was developed
and shown in table 4. Activity relationship template showing the closeness of
relationship between all the required activities performed in each department was
then designed and is shown in figure 4.
Table 3: Closeness Rating Code

CODE CLOSENESS
A Absolutely Necessary
E Essentially Important
I Important
O Ordinarily Okay
U Unimportant
X Undesirable
 1. STORE
2. A
WAREHOUSE E
3. A A
PRODUCTION FLOOR U A
4. TOOL ROOM O O U
E I X
5. ADMINISTRATION U E U U
U I U U
6. CLINIC E X U O O
O U U O I
7. O U U O U X
REST ROOM U I I I O O
8. O U I I O U
LOCKER ROOM O O U O E U
O

9. CAFETERIA O O O I U I
O I I U I
10. CAR PARK U E X O U
U I U O
11. MECHANICAL WORKSHOP O O U O
E I O
X U U
12. SECURITY POST X X
U X
13. LABORATORY X
U
14. BOILER ROOM

Fig 3: Activity Relationship Chart for new layout

Table 4: Degree of Closeness.

Absolutely Essentially OrdinarilyOkay

Department Necessary Important(E) Important(I) (O) Unimportant(U) Undesireable(X)
(A)
1. 2, 3, 5 3 11 10, 13, 14 8, 9 7, 12
2. 3 1 6 5, 9, 10, 12 4, 7, 8, 11, -
13, 14
3. 1 5, 6, 13 7, 11, 14 4, 10, 12 2, 8, 9 -
4. 1 3 10, 11, 14 2, 12 5, 6, 8, 9, 13 7
5. - 3, 6 2, 9, 10, 12 7 4, 8, 11, 13 -
6. - - 3, 12 5, 7, 10, 11, 2, 8, 9 1, 4
13, 14
7. - - 11 8, 9, 10, 14 1, 2, 3, 4, 5, 12
6, 13
8. - 11 5, 12 2, 7, 9, 10, 1, 3, 4, 6, 13 -
14
9. - - 4, 5, 13 1, 2, 3, 6, 7, 10, 11, 14 -
8, 12
10. - 8, 12 1, 3, 4, 7 6, 11 2, 5, 9, 13 14
11. - 10 5, 6, 8 2, 3, 4, 9 - 1, 7, 12, 13,
14
12. - 3 9 1, 6 2, 4, 5, 7, 8, 11, 14
10, 13
13. - 3 9 6 2, 4, 5, 7, 8, 11, 14
10, 12
14. - - 3, 4 1, 6, 7, 8 2, 5, 9, 13 10, 11, 12
 A - 2,3,5 A-3 A-1 A-1 E – 5,6,13 I – 3,12 I – 11

E-3 E-1 E – 5,6,13 E–3 I – 7,11,14 O – 5,7,10,11,13,14 O – 8,9,10,14

I - 11 I–6 I – 7,11,14 I – 10,11,14 O – 4,10,12 U – 2,8,9 U –

1,2,3,4,5,6,13
O - 10,13,14 O – 5,9,10,12 O – 4,10,12 O – 2,12 U – 2,8,9 X – 1,4
X - 12
U – 8,9 U – 4,7,8,11,13,14 U – 2,8,9 U – 5,6,8,9,13
5
X – 7,12 X–7 6
7
1 2 3 4

E – 11 I – 4,5,13 E – 8,12 E – 10 E–3 E–3 I – 3,4

I – 5,12 O – 1,2,3,6,7,8,12 I – 1,3,4,7 I – 5,6,8 I–9 I–9 O – 1,6,7,8

O – 2,7,9,10,14 U – 10,11,14 O – 6,11 O – 2,3,4,9 O – 1,6 O–6 U – 2,5,9,13

U – 1,3,4,6,13 U – 2,5,9,13 X – 1,7,12,13,14 U – 2,4,5,7,8,10,13 U – 2,4,5,7,8,10,12 X – 10,11,12

X – 14 X – 11,14 X – 11,14

8 9 11 14
10 12 13

Fig 4: Activity Relationship Template

5. Observations

It was observed that there were not sufficient equipments like pallet and
hand trucks for conveying finished soaps. After it has been packed into the inner
carton, packed in cellophane and sealed in oven, it is then packed into an outer
carton and sealed by a sealing machine. The factory has just one forklift truck
which makes operation stagnant if the truck is in use in another line. A suggestion
of re-equipping the factory with at least a standby forklift truck with increased
tone carrying capacity and some more pallets since the noted functional few is
not sufficient for the factory.

6. Quality Issue

It was also observed that in process of collecting saponified and dried soap
noodles from the silo into the bag, there are usually an overflow and the factory
workers collect everything on the ground together with the soap noodles,
thereby contaminating the noodles, leaving the left over which also constitute a
nuisance as it makes the factory floor slippery and untidy.
Some solutions were provided in form of advice to the company;

1. Put a basin under each silo, into which soap noodles could fall
into since the soap noodles always overflow.
2. Enlighten the factory workers on the reason for the basin, and
inform them that it should be clean at all time in other to avoid
contamination.
3. Instead of using bag to collect soap noodles, install a conveyor
that leads directly from the silo into the weighing unit of the
amalgamator (mixer), thereby reducing the number of workers
working in the section from eight(8) workers to two (2) in each of
the three shifts.

7. Economic justification

Material handling and plant layout are so interwoven that they cannot be
separated. The material handling equipment choice will affect the plant layout
design. A major statement can say that the primary goal in increasing the
productivity of this particular soap company is good and proper material handling
techniques.

And the following objectives agree with the primary goal;

(i.) Minimization of unit cost.
(ii.) Reduction in accident rates.
(iii.) Achieving miscellaneous goals.
(iv.) Provision of employee convenience, safety and comfort.
(v.) Improved work efficiency.
(vi.) Reduction of in-process inventory.
(vii.) And reduction of in-process time.

8. Estimation of saving

Each of the workers on the amalgamator has some sort of training and they
are been paid Fifteen Thousand Naira Monthly (N15, 000.00), which means the
company pays nothing less than One Hundred and Twenty Thousand Naira
(N 120, 000.00) monthly for each shift and Three Hundred and Sixty Thousand
Naira (N 360, 000.00) for the three shifts. But if the conveyor system is installed,
they will only need to pay Thirty Thousand Naira monthly (N 30, 000.00) for the
two workers which work will be reduced to mere inspection. There by having a
saving of Ninety Thousand Naira (N 90, 000.00) in each of the shifts and Two
Hundred and Seventy Thousand Naira (N 270, 000.00) in all the three shifts.

9. Conclusions

The soap company under study has a well planned factory with most of the
activity areas relatively well placed within the factory. However, based on
Industrial Engineering view of developing/improving to a better operation
pattern, this has brought about some modifications to the layout and also some
suggestions to the administration, believing that the management will favourably
receive these recommendations. An intensive study of material handling
technique might yield monumental savings and some possible line balancing will
combine to reduce downtime and correspondingly cost reduction which gives a
very reasonable increase in profit. This we believe is the ultimate goal of all
individual and organizations at large.

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