Redesigning of Manufacturing Layout for Performance Improvements Using VIP Plan opt Software

IJESM Volume 2, Issue 3 ISSN: 2320-0294
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International Journal of Engineering, Science and Mathematics
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20
September
2013
Redesigning of Manufacturing Layout for
Performance Improvements Using VIP Plan
opt Software
Vetrivel .R
Vasantha Kumar .V*
Thillaivadivazhagan .K*
Abstract
Plant Layout involves the spatial arrangement of equipment within the steel structure or building
of a plant and considers the inter-connections through pipes and ducts as well as walks and
vehicle transportation. An optimal layout has to ensure operability, adequate safety and an
economic design. Industries have for many years been dealing with the problem of making batch
production more efficient and responsive to changes in demand and technology. This paper
presents a new and powerful concept known as Virtual Cellular Manufacturing (VCM). VCM
helps in overcoming the problem of constant change in demand and part type by incorporating
flexible production lines. The project ‘OPTIMIZATION OF PLANT LAYOUT’ is undergoing in
PSG ROTARY MACHINE DIVISION, envisages optimize the plant area of shop floor using
LEANCONCEPT.
Plant Layout is the arrangement of physical elements of facilities (or machines /
equipment) which makes the products or service. Thus facilities layout is the overall
arrangement of machines, men, material handling, service facilities, and passage required to
facilitate efficient operation of production system.

Department of Mechanical Engineering, PSG College of Technology, Coimbatore

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The major goal of plant layout optimization is to maximize profit and productivity by
arrangement of the total ‘manufacturing equation’ – men, materials, and money in fulfilling in
this goal.
This work addresses the optimization of the shop floor area in the Rotary Machine
Division, with a focus on submersible and monoblock production lines. Hence the primary
objective is to evolve and test the several strategies to eliminate wastage on shop floor. In this
work systematic approach is suggested to implementation of lean principles to showcase the lean
could be applied to optimize the plant layout effectively.
Use the value stream mapping gives the proper results to optimize the layout and the
software VIP PLANTOPT is used to optimize the plant layout.
Keywords - process layout, product layout, virtual cellular manufacturing (VCM), value stream
mapping (VSM), VIP plan opt and cellular layout.
I. Introduction
International competition relentlessly places pressure on manufacturing systems to be
more effective. This is manifest by the fact that markets for consumer goods show an increase in
variety and a decrease in product life cycle. Classical manufacturing systems such as process
layout and product layout do not have the ability to respond quickly to these kinds of changes. In
recent years, manufacturing organizations have been unable to cope with an increasingly fast
changing market. Product life tends to be much shorter than in the past; this forces
manufacturing organizations to increase responsiveness, increase flexibility, and shorten setup
time and lower work-in-process inventory while maintaining an acceptable efficiency.
a) Process layout
Process layouts (also known as functional layouts) can be defined as a layout that groups
similar activities together in departments of work centres according to the process or function
that they perform. It is characterized by operations that serve different customers different needs.
The equipment in a process layout is general purpose. Workers are skilled at operating the
equipment in their department. The advantage of process layout is flexibility. The disadvantage
is inefficiency. Process layouts are inefficient because jobs or customers do not flow through in
an orderly fashion; backtracking is common and the workers may experience much "idle time" if
they are waiting for more work to arrive from a different department. Material storage space in a

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process layout must be large to accommodate the large amount of in- process inventory. This
inventory is high because material moves from work-centre to work-centre waiting to be
processed. Finished goods inventory however is low because goods are being made for particular
customers. Process layouts in manufacturing firms require flexible material handling equipment
(such as forklifts) that can follow multiple paths, move in any direction, and carry large loads of
in- process goods. All areas of the facility must have timely access to the material handling
equipment. Process layouts in service firms require large aisles for customers to move
back and forth and ample display space to accommodate different customer preferences.
b) Product layout
Product layouts (also known as assembly lines) can be defined as layouts that arrange
activities in a line according to the sequence of operations that need to be performed to assemble
a particular product. Each product should have its own "line". Product layouts are suitable for
mass production or repetitive operations in which demand is steady and volume is high. Because
of this product layouts are more autonomous than process layouts. The advantage of the product
layout is its efficiency and ease of use. The disadvantage is its inflexibility. Each product must
have a completely different assembly-line set up. The major concern in a product layout is
balancing the assembly line so that no one workstation becomes a bottleneck and holds up
the flow of work through the line. A product layout needs material moved in one direction along
the assembly line and always in the same pattern. The most common material handling
equipment used in product layouts is the conveyor. Conveyors can be automatic (at a steady
speed), or paced by the workers. Aisles are narrow because material is moved only one way; it is
not moved very far. Scheduling of the conveyors, once they are installed, is simple--the only
variable is how fast they should operate. Storage space along an assembly line is quite small
because in-process inventory is consumed in the assembly of the product as it moves down the
assembly line. Finished goods inventory may require a separate warehouse for storage before
they are sold.
c) Cellular layout
Greene and Sadowski provide the following definition of CM: „„CM is the physical
division of the manufacturing facility‟s machinery into production cells. Cellular layouts
attempt to combine the flexibility of a process layout with the efficiency of a product

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layout. Based on the concept of group technology (GT), dissimilar machines are grouped into
work centers, called cells, to process parts with similar shapes or processing requirements. The
layout of machines within each cell resembles a small assembly line. Production flow analysis
(PFA) is a group technology technique that reorders part routing matrices to identify families of
parts with similar processing requirements. Cellular layout has become popular in the past
decade as the backbone of modern factories.
d) Virtual cellular layout
Virtual cellular layout combines the setup efficiency typically obtained by Group
Technology (GT) cellular manufacturing (CM) systems with the routing flexibility of a job
shop. Virtual cells allow the shop to be more responsive to changes in demand and workload
patterns. Production using VCM is compared to production using traditional cellular and job
shop approaches. Results indicate that VCM yields significantly better flow time and due date
performance over a wide range of common operating conditions, as well as being more robust to
demand variability. Dedicating equipment to families results in a loss of pooling synergy, and
thus, poor shop performance. The Virtual Cellular Manufacturing (VCM) production control
scheme creates the illusion of production using manufacturing cells without physically changing
the process layout, yet still achieves the benefits of traditional CM system. A virtual cell is not
identifiable as a fixed physical grouping of workstations, but as data files and processes in a
controller. In other terms, a virtual cell is a logical grouping of resources within a controller.
According to Kannan and Gosh (1996) virtual cells are “flexible routing mechanisms”.
II. Value stream mapping
Value stream mapping is a set of methods to visually display the flow of materials and
information through the production process. The objective of value stream mapping is to identify
value-added activities and non-value-added activities. Value stream maps should reflect what
actually happens rather than what is supposed to happen so that opportunities for improvement
can be identified. Value Stream Mapping is often used in process cycle-time improvement
projects since it demonstrates exactly how a process operates with detailed timing of step-by-step
activities. It is also used for process analysis and improvement by identifying and eliminating
time spent on non-value-added activities.

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III. VIP PLAN OPT software
PLANOPT (floor-PLAN layout Optimization) represents a general purpose layout
optimization algorithm. VIP-PLANOPT (Visually Interfaced Package of PLANOPT) is a
powerful software package developed to produce high-quality optimal layouts for small, medium
and large-sized problems involving UNEQUAL-AREA rectangular blocks or “modules”. The
term Layout Optimization implies the placement of a given number of such modules at their
optimal locations in the Euclidean plane without any overlaps. It is a challenging area of research
in various fields of engineering. In the field of industrial engineering the problem is usually
referred to as “Facility Layout” problem. Several other terms like “Plant Layout”, “Machine
Layout”, “Floor-plan Layout”, etc. refer basically to the same optimization problem.
IV. METHODOLOGY
Study of existing layout
Data collection
Problem identification
Value stream mapping
VIP plan opt
Theoretical calculation

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V. Existing layout
The industry chosen for analysis of
layout is PSG Industrial Institute,
Coimbatore. PSGII‟s main products are
Pumps and Motors for agricultural, domestic
and industrial applications. The production
line that produces the following two
components is specifically analyzed in the
perspective of layout:
1. R-type submersible pump
2. M-type submersible pump
Then we have made a case study on
PSG Industrial Institute. We have analyzed the
existing layout as shown in the fig .1.
Fig.1 Existing layout
VI. Data collection
Table 1.Machines at running condition
Initially we have analyzed the number of machines in the industry which are in running
condition as shown in the table 1.
MACHINE TYPE NO. OF
MACHINES
Driller 2
Lathe 2
CNC 1
Table 2.Machines at idle condition
DESCRIPTION AREA
OCCUPIED
(m2
)
(per
machine)
MACHINE TYPE NO. OF
MACHINES
Driller 14
Milling 3
CNC 1
Lathes 17
Grinding 8
Shearing MC for
Insulation
1
Broacher 1
Jig Boring Machine 1
MACHINE TYPE NO. OF
MACHINES
Driller 2
Lathe 2
CNC 1

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Lathe 3
Drilling machine
(Portable)
0.7
Drilling machine
(Heavy)
4.23
CNC machine 3.9
Broaching machine 3.1
Shearing machine 2.8
Grinding machine 2.91
Table 3.Space study
And then there are few machines which are in idle condition as shown in the table 2. And
also we have made space study on the industry as shown in the table 3.
 Total area of the plant – 2840m2
.
 Area under usage – 2550m2
.
 Area under idle (pathway and others) – 210m2
.
 Area not in use (idle machines) – 80m2
.
VII. Problem identification
a) Observed problems
 Insufficient job completion time.
 More Inventories.
 Lack of clean ground.
 More no of leftovers.
b) Required Alternatives
 Reduction in wastage by using scrap controllers.
 Possible automation.
 Rearranging the flow of work.

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VIII. VIP PLAN OPT
VIP-PLANOPT has a powerful visual interface with tips to help the user. Most users learn to
use the program without any manual as they try VIP-PLANOPT on simple problems. Despite the
efforts to make VIP-PLANOPT a self-learning tool supported by this manual, users may have
questions while modeling a real-world problem. Technical support is available to all users of
VIP-PLANOPT. They are encouraged to ask for assistance whenever they have any such
questions. This chapter describes the primary input required to model a problem using the main
input window of VIP-PLANOPT.
STEP 1 --- Using Create option the
collected length and width
of each and every machine
can be inputted
STEP 2 --- Select Anchored or Soft
option
STEP 3 --- Using Module padding
option the space around the
each and every machine can
be inputted
STEP 4 --- Using Boundary shape
option, the actual and main
constrain of the entire plant
can be inputted as rectangle.
STEP 5 --- Using Flow Matrix option
the input transport and
output transport cost can be
inputted.
STEP 6 --- Using Optimize option we
get the optimal layout of the
plant.

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First we have to give the dimension for each and every machine of industry in the
software as shown in the fig .2.
Fig.2 Main input window of VIP PLAN OPT
Next we have to decide the boundary shape for each and every machine. And then we
have given those machines as movable type in order to optimize it. We have to give power
supply unit as anchored type. And then we are required to give the free space needed around
each and every machine using module padding option as shown in the fig.3.

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Fig.3 Module Padding Input Window
Fig.4 Flow matrix input window

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After that we have to analyse flow of materials between the machines. And also we have
calculated the unit cost required for the single product. We have to give the number of products
to be moved and unit cost for the transportation in flow matrix option as shown in fig.4.
Fig.5 Optimal Layout Window
Finally, we have to optimize our existing layout in order to minimize the cost. Software
results show that some unwanted transport and space occupation leads to high cost. If we
eradicate those wastes we can easily minimize cost. The final layout optimized by software is
shown in fig.5. This software have been validated by theoretical calculation.

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IX. Theoretical calculation
Where, fij – Flow matrix between i and j module
Uij – Unit cost matrix
Dij – Distance matrix
i,j are machines.
dij = | xi xj | +| yi yj |(Rectilinear form)
Machine Original
cost(Rs)
Modified
cost(Rs)
Cost of
saving
(Rs)
Radial
Boring
Machine
2778.00 2407.24 370.76
Milling
Machine
4343.20 1370.12 2973.08
Rotor
Balancin
g
Machine
2000.16 1666.80 333.36

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Slotting
Machine
3333.52 1777.92 1555.56
Mechani
cal and
Electrical
Shearing
Machine
3147.72 1573.86 1573.86
TOTAL 6806.66
Table 4.Theoretical Calculation
For 100 Products Rs 6806.66
For 500 Products Rs 34033.30
We have theoretically calculated cost is shown in the table 4.
Fig.6 Modified plant layout
Finally we have designed our modified layout of the industry using AutoCAD software is
shown in fig.6.

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X. Conclusion
This paper enables the user to include both qualitative as well as quantitative aspects of
layout. After implementing this layout in the industry, the material movement in the production
line is decreased from1251 m to 713 m which shows a reduction of 43%.The machines in the
existing process layout are underutilized and it is increased by 38.89 % in modified layout. The
results obtained from the VIP PLANOPT software shows that, modified layout gives better
output than the existing layout. Lean techniques are basically scientific approaches that
continuously improve quality, speed, cost and flexibility by eliminating waste or non-value
added activities. The work presented here was carried out by adapting group technology, cellular
manufacturing system, and systematic layout planning, which are basically scientific approaches
and part of lean techniques that led to improve the quality, speed, cost and flexibility.
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